Biden Requests Banking Restrictions

( With the failure of Silicon Valley Bank a few weeks ago, the White House is reportedly preparing to urge banking examiners to impose new limits on smaller banks, citing two individuals acquainted with the preparations.

According to a report, the Democrat Party’s planned recommendations for President Joe Biden would seek to restore regulations they claimed were “relaxed”  for banks by House and Senate and the Federal Reserve during the Trump administration. 

No one from the Biden White House responded to rumors about their intentions.

According to the research, the Federal Reserve, the Comptroller of the Currency, and the FDIC would need to approve and execute any additional measures.

The report stated that potential actions include more regular so-called stress tests and mandate that banks have more extensive capital requirements, more secure assets compared to risk loans, and emergency plans for dissolution.

The FDIC announced First Citizens BancShares reached an agreement to acquire Silicon Valley Bank (SVB), a technology lender that had just failed.

The government seized control of SVB on March 10, just after runs on the bank forced a collapse. The FDIC then attempted to sell the bank, in whole or in part, to a new owner. According to the FDIC, it was able to sell $72 billion of its assets to First Citizens at a markdown of $16.5 billion.

According to the announcement, the FDIC will retain ownership of around $90 billion in  assets formerly held by SVB that were not included in the transaction. The FDIC would receive up to $500 million in equity appreciation rights related to First Citizens shares. 

According to the federal regulator, the FDIC’s Deposit Insurance Fund would lose almost $20 billion due to SVB’s bankruptcy.

The 17 locations formerly operated by SVB have reopened as part of First-Citizens Bank & Trust Corporation.

According to the announcement, its customers’ deposits were immediately moved to First Citizens and are fully insured up to the $250,000 limit by the FDIC. 

The fall of SVB, the 16th biggest bank in the United States, was the greatest in the country since 2008.