CCP-linked Silicon Valley Bank depositors could be ‘made whole’ by US: Yellen

Treasury Secretary Janet Yellen revealed on Thursday that the US banking system could potentially allow Silicon Valley bank depositors affiliated with the Chinese Communist Party (CCP) to be “exhausted”.

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Sen. James Lanlord, R-Okla. asked Yellen during a Senate Finance Committee hearing about depositors allegedly linked to the CCP.

“It has been publicly reported that SVB has a significant number of Chinese investors, including some companies that were directly linked to the Chinese Communist Party,” Lankford began.

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“So what I’m asking is: Will my bank in Oklahoma pay a special assessment to be able to make the Chinese investors in Silicon Valley Bank whole?” the Republican senator asked.

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Yellen responded, “Uninsured investors would be made whole in that bank and I think that could include foreign depositors, but I don’t believe there is any legal basis to discriminate between uninsured depositors.”

Yellen insisted during the hearing that the US banking system was “robust” despite the collapse of SVB.

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The Treasury Secretary asserted, “I can assure the members of the committee that our banking system remains sound and Americans can feel confident that their deposits will be there.” “This week’s action demonstrates our unwavering commitment to ensuring that depositors’ savings are protected.”

SVB was shut down by the FDIC last Friday, marking the worst US financial institution failure since 2008.

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The California-based bank, which was the 16th largest in the US, failed after worried depositors withdrew large sums of money, plunging 60% over two consecutive days. 93% of SVB investors are above the FDIC’s $250,000 protection limit.

The FDIC and SVB have not responded to FOX Business’ request for comment.