Senator Tom Cotton (R-AR) said in a tweet on Monday that the Biden administration had failed to promise not to use taxpayer money to rescue Chinese firms that had invested in Silicon Valley Bank (SVB).
Cotton tweeted, “It’s generally documented that SVB routed American money into Chinese enterprises.”
“Today, I asked the Biden administration to promise not to utilize public money from Arkansas to rescue Chinese corporations, but they refused. Which tells you President Biden intends to do exactly that,” he continued.
According to a CNBC story, Silicon Valley Bank had helped numerous start-up businesses, including Chinese businesses.
The bank reportedly permitted the use of Chinese mobile numbers for opening accounts and permitted a week-long screening period for new accounts for start-ups as opposed to the three to six months required by regular banks.
According to the research, these China-based start-ups were able to access funding from American investors thanks to their SVB bank accounts.
According to the report, Everest Pharmaceuticals, a Chinese biotech company, hopes to recover most of its bank deposits through the FDIC of the United States.
Chinese businesses scrambled over the weekend to convince their clients and investors that their exposure to the SVB collapse is minor or that they’ve got enough funds available to withstand any loss of access to their SVB money, as Breitbart News’ John Hayward reported on Monday.
On Sunday, Treasury Secretary Janet Yellen stated that although the Federal Reserve was moving to establish an emergency lending program for banks, the federal government would not provide financial assistance to the bank’s owners and investors. “The US banking sector,” she asserted on CBS’s Meet the Nation, “is truly safe, well-capitalized, and resilient.”
In a brief address on Monday, President Joe Biden sought to reassure Americans that the US banking sector is secure.
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