RALEIGH, N.C. (WNCN/AP) — After the sudden collapse of Silicon Valley Bank, California Democratic Rep. Maxine Waters started furiously working the phones to find out what was going on with the failed lender — and what would happen to its panicked depositors.
Waters, former chair of the House Financial Services Committee, had her doubts that another bank would step up as a savior and buy the defunct institution.
So began a frenetic weekend of nonstop briefings with regulators, lawmakers, administration officials and President Joe Biden himself about how to handle the demise of the nation’s 16th-biggest bank and a go-to financial institution for tech entrepreneurs. At the core of the problem was tens of billions of dollars — including money companies needed to meet payrolls — sitting in Silicon Valley Bank accounts that were not protected by federal deposit insurance that only goes up to $250,000.
Rep. Valerie Foushee (D), who represents Durham, Person, Orange, Alamance and Granville counties in North Carolina, sat down with CBS 17’s Russ Bowen on Wednesday, sharing her thoughts on the bank collapse and the impact its had.
“I am not as concerned today as I would have been over the weekend,” she said. “I think that the Biden administration acted really quickly to get a handle on this situation and to get the information out.”
“We are talking about something that you cannot it with the banking system such that it is across the country, that they insured that people will have access to their money, depositors would have access to their monies, that small businesses were going to be able to make payroll.”
“I think that what we’re hearing now is that it was not as bad as we thought it could be, but certainly there has to be oversight,” Foushee continued. “We have to take the opportunity to find out why this happened and how we prevent it from happening again.”