CCP-linked Silicon Valley Bank depositors could be 'made whole' by US: Yellen
Yellen said there was no legal basis to discriminate against CCP-linked depositors
CCP-linked Silicon Valley Bank depositors could be 'made whole' by US: Yellen
Treasury Secretary Janet Yellen said that under the current agreement, Chinese Communist Party-linked (CCP) Silicon Valley Bank depositors could be "made whole" by the U.S. banking system.
Treasury Secretary Janet Yellen disclosed on Thursday that the U.S. banking system could potentially allow for Chinese Communist Party-linked (CCP) Silicon Valley Bank depositors to be "made whole."
Sen. James Lanklord, R-Okla., asked Yellen about the reported CCP-linked depositors during a Senate Finance Committee hearing.
"It has been reported publicly that SVB had a large number of Chinese investors that are there, including some companies that were directly connected to the Chinese Communist Party," Lankford began.
"So what I’m asking is: will my banks in Oklahoma pay a special assessment to be able to make Chinese investors whole in Silicon Valley Bank?" the Republican senator asked.
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U.S. Treasury Secretary Janet Yellen testifies about the Biden Administration's FY2024 federal budget proposal before the Senate Finance Committee in the Dirksen Senate Office Building on Capitol Hill on March 16, 2023 in Washington, DC. (Chip Somodevilla/Getty Images / Getty Images)
"Uninsured investors will be made whole in that bank and I suppose that could include foreign depositors, but I don’t believe there is any legal basis to discriminate among uninsured depositors," Yellen responded.
Yellen emphasized during the hearing that the American banking system is "sound" despite SVB's collapse.
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A customer stands outside of a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Depo (Justin Sullivan/Getty Images / Getty Images)
"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," the treasury secretary emphasized. "This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe."
SVB was closed by the FDIC last Friday, marking the worst U.S. financial institution failure since 2008.
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People queue up outside the headquarters of Silicon Valley Bank to withdraw their funds on March 13, 2023 in Santa Clara, California. (Liu Guanguan/China News Service/VCG via Getty Images / Getty Images)
The California-based bank, which was the 16th largest bank in America, failed after anxious depositors withdrew large amounts following its shares sinking 60% two days in a row. 93% of SVB investors held above the FDIC's $250,000 protection threshold.
The FDIC and SVB have not responded to FOX Business' request for comment.