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Silicon Valley Bank Collapse - Janet Yellen Testimony

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Silicon Valley Bank Collapse - Janet Yellen Testimony
March 16, 2023
Category English to Asia
Content Type Package
Language English
Transcript/Script ((ANCHOR INTRO)) Global markets are reeling after the second largest collapse of a U.S. bank and Washington’s subsequent bailout. VOA Correspondent Jessica Stone has the story from Washington.((take pkg))Trt: 2:52Oc: voa news washington HELLO FROM WASHINGTON. US TREASURY SECRETARY JANET YELLEN TOOK TOUGH QUESTIONS ON CAPITOL HILL, THURSDAY ABOUT WHAT LED TO THE COLLAPSE OF ONE OF THE LARGEST BANKS IN THE UNITED STATES. SILICON VALLEY BANK IS A MAJOR PLAYER IN FINANCING TECHNOLOGY START-UPS AROUND THE WORLD. IT WAS PUTTING SOME OF THE BANK’S MONEY IN LONG-TERM BONDS TO GROW THE INVESTMENT. WHILE INTEREST RATES WERE LOW, THAT WAS A GOOD IDEA. BUT AS YOU KNOW, THEY’VE BEEN RISING. THAT MADE THE BONDS A BAD BET. LAST WEDNESDAY, SVB REPORTED IT HAD LOST ALMOST $2 BILLION. SVB NOTIFIED ITS CUSTOMERS… AND THEY STARTED WITHDRAWING THEIR CASH. SVB LOST MORE THAN 160 BILLION DOLLARS IN VALUE OVERNIGHT WHEN ITS STOCK TANKED. FEDERAL REGULATORS STEPPED IN ON FRIDAY. SO HOW DOES THIS IMPACT THE REST OF US? A FEW WAYS 1 COMPANIES WE ALL KNOW BANKED AT SVB. FROM ETSY – A MICROBUSINESS SITE – TO ROBLOX – A GAMING PLATFORM. SPOTIFY, PINTERST, FITBIT, ROKU – THEY ALL BANKED AT SVB SECOND TO RESCUE SVB, THE US GOVERNMENT MOVED 40 BILLION DOLLARS OUT OF THE U.S. TREASURY FUND BUT ACCESSING THESE FUNDS MAY SPEED UP THE TIMETABLE FOR WHEN WASHINGTON REACHES ITS BORROWING LIMIT AND CONGRESS HAS TO VOTE ON RAISING IT OR RISK DEFAULT. THAT’S NOT THE NEWS MARKETS LIKE TO HEAR. SO FAR, MARKETS IN JAPAN, AUSTRALIA AND EUROPE HAVE ALL FALLEN ON FEARS STOKED BY MEMORIES OF THE 2008 GLOBAL FINANCIAL CRISIS. US TREASURY SECRETARY JANET YELLEN TESTIFIED BEFORE THE SENATE FINANCE COMMITTEE THURSDAY: (TAKE SOT) “I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” JESSICA ON CAM: THERE’S NOW CONCERN OVER WHAT THIS MEANS TO THE TECH AND INNOVATION ECONOMY. THOSE COMPANIES HAVE SPECIAL BANKING NEEDS THAT SVB MET. WITH NO SVB, WHAT HAPPENS NOW FOR START-UPS? JESSICA STONE VOA NEWS WASHINGTON
Network VOA
Embargo Date March 16, 2023 16:26 EDT
Byline Jessica Stone
Brand / Language Service Voice of America - English

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