The World Worries Over SVB Bankruptcy... US President Discusses Response

UK SVB Faces Imminent Bankruptcy... Crisis Spreads to Canada

The bankruptcy of Silicon Valley Bank (SVB), which funded American startups, is spreading a sense of crisis both inside and outside the United States. President Joe Biden discussed countermeasures with California Governor Gavin Newsom regarding the SVB bankruptcy. Approximately 8,500 SVB employees are facing layoffs.

According to Reuters, on the 11th (local time), the White House issued a statement saying, "The President and the Governor held talks to prepare measures related to Silicon Valley Bank." It also explained that they discussed Governor Newsom's declaration of a state of emergency due to the SVB bankruptcy. Earlier, on the 10th, Governor Newsom announced a state of emergency and requested federal government support.

The SVB bankruptcy controversy is spreading globally. According to Bloomberg and others, SVB's UK branch has already suspended transactions and is facing bankruptcy. SVB has also expanded into Canada, China, Denmark, Germany, India, Israel, Sweden, and other countries, raising concerns that the impact could be significant.

[Image source=Yonhap News]

In fact, in Canada, ad tech development company Acuity Ads, which had deposited the majority of its cash with SVB, requested a trading halt on the 10th ahead of the market opening on Monday (13th). SVB's Canadian branch supports the local tech industry and increased its loan volume last year to approximately 435 million Canadian dollars, about double the previous year's 212 million Canadian dollars.

Meanwhile, due to the SVB bankruptcy, internal employees are losing their jobs. The Federal Deposit Insurance Corporation (FDIC), the bankruptcy receiver for SVB, sent an email to employees on the 10th offering 45 days of employment with 1.5 times their salary. The FDIC explained that employees will be laid off afterward. As of the end of last year, SVB had 8,528 employees.

U.S. regulators have begun the process of selling SVB assets to return depositors' funds and are seeking acquiring companies.

This content was produced with the assistance of AI translation services.