Indian-American Congressman Ro Khanna has urged the Congress to come together to reverse the deregulation policies put in place under the previous Trump administration to avert future instability like the one seen after the collapse of the Silicon Valley Bank.
“I am glad that the Department of Treasury listened and moved to protect workers, the innovation pipeline, and the economy at large. But the work does not end here,” Khanna said in a statement after the announcement that the depositors of Silicon Valley Bank (SVB) will have access to all of their money starting Monday.
“We have known since 2008 that stronger regulations are needed to prevent exactly this kind of crisis. The Congress must come together to reverse the deregulation policies that were put in place under Trump to avert future instability,” he said on Sunday. Khanna, who represents Silicon Valley in the House of Representatives and is the Congressional Progressive Caucus Deputy Whip, said when the news broke of the Silicon Valley Bank collapse, he spoke with over 600 of his constituents, including non-profit leaders, small business owners, startup founders, and impacted employees of small businesses. “In these conversations, I emphasised the need for decisive action to protect depositors and workers. Then on Saturday, I heard from Sunnyvale Community Services, a non-profit in my district supporting people experiencing homelessness and hunger. After years of never missing a payment, they were on the verge of paying off the mortgage for a larger facility to serve their clients,” he said. “Yesterday, they worried they might lose their deposits and therefore their ability to pay their mortgage. They and the other organisations and workers who did nothing wrong deserve to be protected,” Khanna said. “This morning, we had no answers. All we had were vague statements about helping depositors and acting in a timely manner from the Department of Treasury. I went on Face the Nation and outlined the case for paying all depositors in full and ensuring they have access to their accounts by Monday morning. I explained that it should not and would not need to cost taxpayers a dime,” he added in a statement.
California-based Silicon Valley Bank, the 16th largest bank in the United States, was closed on Friday by the California Department of Financial Protection and Innovation which later appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver.
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