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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    The timing of the fall of the Silicon Valley Bank terrifies the worldproposals from

    Rocky
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    The timing of the fall of the Silicon Valley Bank terrifies the worldproposals from Empty The timing of the fall of the Silicon Valley Bank terrifies the worldproposals from

    Post by Rocky Mon 13 Mar 2023, 5:02 am

    The timing of the fall of the Silicon Valley Bank terrifies the world[rtl]proposals from[/rtl]

    Arab and International / Economy |Yesterday, 22:56
    The timing of the fall of the Silicon Valley Bank terrifies the worldproposals from Rtrtrrrg

    Western governments are moving towards finding ways to limit the potential damage to the repercussions of the fall of the Silicon Valley Bank, and British Prime Minister Rishi Sunak said, "The government is working to find a solution to limit corporate losses as a result of the collapse of the American Silicon Valley Bank and its branch in Britain." Well-informed sources told Reuters that the US authorities are about to take "fundamental measures" to support deposits in Silicon Valley Bank (SVB) and prevent the widening repercussions of its sudden collapse.
    Details of this announcement, which is expected to be issued later on Sunday, were not yet available, and one of the sources said that the Federal Reserve (the US Central Bank) had succeeded in taking measures that kept banks operating during the Covid-19 pandemic and that it could take similar measures now, and a source said. Another, "It would be substantial action, not just words."
    Sunak told reporters traveling with him to the United States that he understands "the concerns and concerns of the bank's customers," adding that he and the government are working "to ensure that we can work to find a solution that secures individuals' operational liquidity and cash flow needs."
    The sudden collapse last Friday of the "SVB Financial" group, which focuses on technology start-ups, is the largest banking collapse in the United States since the financial crisis of 2008.
    Branch purchase
    People familiar with the talks told Reuters that potential bidders for the UK subsidiary of SVB have been contacted.
    Finance Minister Jeremy Hunt said earlier, "The collapse could have a significant impact on British technology companies in light of the bank's importance to some customers," adding, "We will present plans very soon to ensure that people are able to meet their cash flow requirements to pay their employees." ".
    Hunt said efforts are focused on finding "a long-term solution that minimizes or completely eliminates the losses incurred by some of our promising companies."
    The Financial Times reported that the British government is seeking to conclude a deal to acquire the British arm of the Silicon Valley bank branch, with an offer from a Middle Eastern investor.
    The report added that the most prominent acquisition offers submitted until last night were from a Gulf company.
    Informed sources said that the US government is expected to issue a substantial announcement to support deposits in the "Silicon Valley" bank, which collapsed last Friday, and to prevent the widening of the repercussions.
    The sources said that Biden administration officials have worked to assess the repercussions of the bank's collapse, the largest since the 2008 financial crisis, with a special focus on the capital and risk sector and regional banks.
    Implications for the markets
    In addition, most stock markets in the Middle East closed lower, led by the Egyptian Stock Exchange, against the backdrop of a drop in global stocks due to fears of contagion following the collapse of the "Silicon Valley" bank.
    The bank, which was established to provide services to start-ups, has become the biggest bank to collapse since the 2008 financial crisis, causing turmoil in global markets and leaving billions of dollars in deposits from companies and investors stranded. The index in Qatar fell 1.6 percent, with almost all stocks in negative territory, including That is the share of Qatar Islamic Bank, which fell 3.9 percent, and the Saudi index fell 0.8 percent, affected by the decline in the share of “Al-Rajhi Bank” by 1.7 percent, and the share of “Rital for Urban Development” by 0.8 percent.
    In addition, some executives and investors in the financial sector are increasingly concerned that the collapse of Silicon Valley Bank "SVB" will have a domino effect in other banks in the United States unless regulators find a buyer early this week to protect uninsured deposits.
    global concern
    And the "SVB" financial group became the day before yesterday, Friday, the largest bank to collapse since the financial crisis in 2008, which raised concerns in the markets and left the fate of billions of dollars belonging to companies and investors pending.
    Informed sources said the day before yesterday that the Federal Deposit Insurance Corporation, which assumed judicial custody over the bank, is seeking to find another bank during the beginning of this week that is ready to merge with Silicon Valley Bank.
    Reuters could not verify whether an agreement could be reached soon.
    Special guarantees
    Some industry executives said the size of such a deal would be huge for any bank and would likely require regulators to offer special guarantees and other facilities to any buyer.
    The Santa Clara, California-based bank ranks 16th among the largest US banks with assets of $209 billion, which makes the list of potential buyers who can execute a deal over the weekend relatively short, officials said, speaking on condition of anonymity.
    Deposit support
    Bloomberg reported that the US Federal Reserve and the Federal Deposit Insurance Corporation are considering creating a fund that would allow regulators to support deposits in banks facing defaults.
    "Regulators are in discussions about the new special tool with bank officials in the hope that such a measure will reassure depositors and help contain any panic," the report said.
    But it was not clear whether regulators would have the political backing to save the bank, which was set up to serve start-ups and investors in Silicon Valley.
    The Federal Reserve and the Federal Deposit Insurance Corporation did not immediately respond to a request for comment.
    The White House said President Joe Biden spoke with California Governor Gavin Newsem about the bank and efforts to deal with the situation.
    "Everyone is working with the Federal Deposit Insurance Corporation to stabilize the situation as quickly as possible," Newsom said.
    Analysts and senior investors have warned that without a solution by Monday, other banks are likely to come under pressure if depositors worry about their savings.
     Harm reduction in Britain
    In Britain, where the SVB Group has a local subsidiary, finance minister Jeremy Hunt said he was working with Prime Minister Rishi Sunak and the Bank of England to "avoid or minimize the damage" caused by the bank's chaos.
    "We've been working very hard over the weekend and into the night," Hunt told Sky News. "We will very soon present plans to make sure people can meet their cash flow commitments to pay their staff."
    More than 250 executives at British technology companies sent a letter to Hunt on Saturday, a copy of which was seen by Reuters, calling on the government to intervene.
    But some specialists believe that the repercussions of the bank's collapse will be limited.
    System robustness
    "We don't see this as the beginning of a broader threat to the integrity and resilience of the banking system," said Garrett Seiberg, an analyst at TD Coin. "Silicon Valley Bank has a unique business model that relies less on individual deposits than traditional banks."
    Great damage to emerging companies
    In addition, the bankruptcy of Silicon Valley Bank frozen tens of billions of dollars deposited by startups and private equity funds, which raised fears of a shock in the technology sector.
    Avoid collapsing
    The bank that was presenting itself as the "financial partner of the innovation economy" was placed under the jurisdiction of the FDIC to avoid collapse.
    "Silicon Valley Bank was familiar with the investor community," said Joseph Dusimon, a professor at Stanford University and founder of several start-up companies, adding that the bank's officials "were helping us with recruitment and giving financial advice to new officials... Their absence is a great loss." And he considered that the bank was "a real partner, the like of which I have not seen before."
    Silicon Valley Bank boasted that "nearly half" of the technology and life sciences companies funded by US investors were among its clients.
    expected liquidation
    The bank's orderly liquidation will allow each customer to recover up to $250,000, the maximum amount guaranteed by the Federal Deposit Insurance Corporation.
    But according to Silicon Valley Bank's annual report, the uninsured portion of deposits amounts to about 96 percent of the total value of deposits of $173 billion.
    And the Federal Deposit Insurance Corporation announced the day before yesterday that the return of these funds depends on the amounts that you will earn from selling the bank’s shares, which is a process that is often long and whose outcome is uncertain.
    “The real victims of the Silicon Valley collapse are the depositors, startups with between 10 and 100 employees who can no longer afford salaries and will have to put people on hold,” Gary Tan, chairman of Y Combinator, which helps startups, wrote in a tweet. Technical unemployment or dismissal from tomorrow.
    A new generation of American companies
    "In a month or two, a generation of American startups will be gone," he warned, adding that "years of American innovation are at stake."
    For his part, investment activist Bill Ackman confirmed in a tweet that the bank's disappearance "may destroy an important engine of the economy in the long term because companies backed by private equity funds were dependent on Silicon Valley Bank for their loans and money."
    And he believed that if no financial institution took possession of what was left of the bank, "a general rescue plan should be considered."
    And US media reported that those responsible for the bank discussed Thursday and Friday the possibility of other banks acquiring it, but to no avail.
    And Champ Bennett, one of the founders of the “Capsol” video platform, revealed yesterday that $ 5 million was pumped in mid-February during the company’s first fund-raising operation, deposited with Silicon Valley Bank and cannot be accessed.
    "It's hard to imagine what's next, but it doesn't look good," he wrote in a tweet, denouncing the view that the bank's rescue plan will come to the rescue of the "1 percent" of the richest, wealthy businessmen and investors, or "giant technology companies."
    Semaphore news site reported that alternative investment firms, "hedge funds", are proposing to take the place of the bank and immediately pay money to companies doing business with Silicon Valley Bank.
    To do this, the latter must agree to give up 20 to 40 percent of their deposits, as the hedge funds hope to recover part or all of the difference from the bank.
    In addition, the director of the virtual music show platform Wave warned his fellow tech entrepreneurs. "Whether you have money in a Silicon Valley bank or not, you will not surrender. It will seriously affect everyone," he said.
    Like others, Champ Bennett expresses concern about the fate of other banks in the technology sector, especially First Republic, whose share price has fallen by nearly 30 percent in two days.
    Some see the bankruptcies of two banks within a few hours this week, Silicon Valley and Silvergate Bank, as a lesson in the alleged strength of the banking system.
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