June 20, 2024

Tom Cotton: Biden Administration Won’t Commit to Not Bailing Out Chinese SVB Investors

Cotton: Biden Admin Won’t Commit to Not Bailing Out Chinese SVB Investors

Sen. Tom Cotton said the Biden administration refused to commit to not bailing out Chinese companies that invested in Silicon Valley Bank.

Sen. Tom Cotton (R-AR) said in a tweet Monday that the Biden administration refused to commit to not bailing out Chinese companies that invested in Silicon Valley Bank (SVB) with American taxpayer money.

“It’s well known that SVB funneled American money into Chinese companies,” Cotton tweeted.

“I pressed the Biden administration today to commit not to bailout Chinese companies with money from Arkansas’s taxpayers, but they refused. Which tells you that’s exactly what President Biden plans to do,” he said.

Silicon Valley Bank had supported many start-up companies, including those from China, according to a CNBC report.

According to the report, the bank allowed Chinese mobile numbers to be used for opening accounts and allowed for a week-long vetting period for new accounts for start-ups compared to the three to six months for traditional banks.

Having a bank account with SVB allowed these China-based start-ups to tap funding from U.S.-based investors, the report said.

The report notes that a Chinese biotech company called Everest Medicines said it expects to recover most of its deposits at the bank through the U.S. Federal Deposit Insurance Corporation (FDIC).

As Breitbart News’s John Hayward reported Monday, Chinese firms rushed over the weekend to reassure their customers and investors that their exposure in the SVB collapse is minimal, or that they have enough cash on hand to weather any loss of access to their SVB funds.

Treasury Secretary Janet Yellen on Sunday said the federal government would not bail out the investors and owners of the bank, but the Federal Reserve moved to set up an emergency lending program for banks. She claimed on CBS’s Face the Nation, “the American banking system is really safe and well-capitalized, it’s resilient.”

President Joe Biden on Monday tried to reassure Americans that the U.S. banking industry is safe in a brief statement on Monday.

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Silicon Valley Bank Provided Massive Amounts of Capital to Chinese Tech Ventures – Now Biden’s FDIC and the Federal Reserve Are Bailing It Out

The Silicon Valley Bank has served as a huge bridge to China and Chinese tech engineers.  Is this why the corrupt Biden Gang is bailing it out?

Just this morning the US House reported that they have the goods on the Bidens’ corrupt and criminal actions with China.  The Bidens are in bed with the corrupt China regime and the House has the evidence.  The Bidens were receiving money from the CCP.

Related to this is the failing bank, Silicon Valley Bank which provides massive amounts of funding to the China venture capital sector.  The South China Morning Post noted the bridge between the bank and China.

The collapse of Silicon Valley Bank (SVB) has created a sense of panic within China’s tech start-up and venture capital (VC) sector, as the lender served as a bridge between US capital and Chinese tech entrepreneurs.

As of Sunday afternoon, topics related to the collapse of the bank, including “SVB bankruptcy has spread to multiple countries” and “SVB bankruptcy affects Chinese entrepreneurs”, were trending on Chinese microblogging site Weibo, with posts receiving hundreds of millions of views.

“Is the 2008 Financial Crisis happening again?” said a Weibo user with the handle MaxC.

China is the second largest venture capital market and SVB was right in the middle of it according to Tech Crunch.

China, the world’s second-largest venture capital market. Across social media platforms, investors and startups are rushing to share news articles on the fiasco and thoughts on how to prevent such a catastrophic moment. For some companies, however, the impact is tangible.

When China was still new to venture capital in the late 1990s, SVB was among the first financial institutions to start serving the country’s startups, while traditional, risk-averse banks avoided them. Over time, the bank has become a popular option for China-based startups fundraising in USD as well as some China-focused USD venture capital firms.

Late today it was reported that the Biden regime is going to have its FDIC and Federal Reserve make good on all deposits in the bank – a significant portion of which are China-owned accounts.

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| Global

SVB’s debacle is causing panic in China’s startup industry

Castle Hall shows a list of investment firms banking with SVB, including major funding vehicle for Chinese startups Sequoia Capital China, and prominent investment bank China Renaissance

SVB’s debacle is causing panic in China’s startup industry | TechCrunch

When China was still new to VC in the late 1990s, SVB was among the first financial institutions to start serving the country’s startups, while traditional, risk-averse banks avoided them.

The panic sparked by the collapse of Silicon Valley Bank is spreading to China, the world’s second-largest venture capital market. Across social media platforms, investors and startups are rushing to share news articles on the fiasco and thoughts on how to prevent such a catastrophic moment. For some companies, however, the impact is tangible.

When China was still new to venture capital in the late 1990s, SVB was among the first financial institutions to start serving the country’s startups, while traditional, risk-averse banks avoided them. Over time, the bank has become a popular option for China-based startups fundraising in USD as well as some China-focused USD venture capital firms.

In the U.S., VCs have been urging their portfolio companies to withdraw money from SVB as soon as the bank announced that it intended to sell shares in pursuit of more capital. Investors are advising the same to Chinese startups exposed to the bank, according to three founders and two investors TechCrunch talked to.

“People realized that things weren’t right after seeing SVB’s shares were down 30% in premarket trading,” said one of the Chinese founders, whose app targets North American users. “I immediately told other Chinese peers after my American investors told me [to withdraw money from SVB].”

A widely circulated report from the due diligence company Castle Hall shows a list of investment firms banking with SVB, including major funding vehicle for Chinese startups Sequoia Capital China, and prominent investment bank China Renaissance.

SVB’s localized effort in China appears unaffected, for now. According to its website, SVB first began operating in China in 1999. In 2012, it formed a joint venture with Shanghai Pudong Development Bank, the first Sino-U.S. joint venture bank to obtain a license since 1997.

Bloomberg reported earlier that the JV is urging its clients to stay calm, saying it “isn’t affected by the turmoil surrounding the U.S. lender.” The bank said later in a statement that it has “a sound corporate structure and an independently operated balance sheet.”

Since its inception, the JV has since carved out a list of services, including onshore banking financial products and services in China, including liquidity solutions, trade financing, local and foreign currency deposits, wealth management, and foreign exchange settlement and sales services.

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Silicon Valley Bank’s China joint venture says operations stable and independent amid US parent’s collapse

The joint venture had a registered capital of 2 billion yuan (US$289 million) as of the end of June

Silicon Valley Bank’s China joint venture says operations stable and independent amid US parent’s collapse

The China joint venture of Silicon Valley Bank (SVB) said its operations have been independent and stable, seeking to calm local clients amid its US parent’s collapse. “SPD Silicon Valley Bank Co has always operated in a stable manner in accordance with Chinese laws and regulations, with a standard governance framework and independent balance sheet,” the joint venture between Shanghai Pudong Development Bank and SVB said on its WeChat account on Saturday.

The China joint venture of Silicon Valley Bank (SVB) said its operations have been independent and stable, seeking to calm local clients amid its US parent’s collapse.

“SPD Silicon Valley Bank Co has always operated in a stable manner in accordance with Chinese laws and regulations, with a standard governance framework and independent balance sheet,” the joint venture between Shanghai Pudong Development Bank and SVB said on its WeChat account on Saturday.

Founded in August 2012 as the first tech-focused bank in China, it has committed to serve the country’s science and innovation enterprises, the venture said.

SVB became the biggest US lender to fail in more than a decade after a tumultuous week that saw an unsuccessful attempt to raise capital and a cash exodus from the tech start-ups that had fueled the company’s rise.

A customer reads a press release at the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, on March 10, 2023. The US lender became the country’s biggest bank failure in more than a decade, after its long-established customer base of tech start-ups grew worried and yanked deposits. Photo: Bloomberg alt=A customer reads a press release at the entrance of the Silicon Valley Bank headquarters in

Regulators stepped in and seized the US bank on Friday in a stunning downfall for a lender that had quadrupled in size over the past five years.

Just hours earlier, Shanghai Pudong had given SVB a clean bill of health, underscoring how sudden its downfall was. The Shanghai company said the joint venture is not affected by the turmoil surrounding the US lender, and urged clients to stay calm.

The joint venture had a registered capital of 2 billion yuan (US$289 million) as of the end of June, with its Chinese and US parents each holding half of the shares, according to Shanghai Pudong’s public filings.

The venture had total assets of 21.3 billion yuan and recorded a net loss of 5.5 million yuan in the first half of 2022, according to its filings.

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| Economy

Steve Cortes on Biden’s ‘Inflationary Nightmare’

Biden’s “Inflationary Nightmare” Has Culminated Into The Worst Years Of Investment Losses Ever

Steve Cortes: Biden’s “Inflationary Nightmare” Has Culminated Into The Worst Years Of Investment Losses Ever



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