CZ comments on the joint rescue of bankrupt banks by US regulators: The rescue will make banks lose the motivation to manage risks | Binance Daily (March 13)

● Signature Bank went bankrupt and has been taken over by the US FDIC. All depositors will be compensated.

New York-based Signature Bank was shut down by state regulators on Sunday. Adrianne Harris, head of the New York State Department of Financial Services, said in a statement that the Federal Deposit Insurance Corporation (FDIC) has taken over the bank. This is the third bank failure in a week, after Silvergate Bank and Silicon Valley Bank collapsed on Wednesday and Friday, respectively. Harris said the action was taken "to protect depositors." The Federal Reserve, FDIC and U.S. Treasury issued a joint statement saying that all depositors who used Signature will be compensated. (CoinDesk)

● U.S. Treasury Department: FDIC deposit insurance fund exceeds $100 billion, enough to cover all deposits of Silicon Valley Bank and Signature Bank

The U.S. Treasury Department said that some institutions have similar problems to Silicon Valley Bank. Currently, the deposit insurance fund of the Federal Deposit Insurance Corporation (FDIC) exceeds $100 billion, which is enough to cover the deposit amounts of all Silicon Valley Bank and Signature Bank. (Jinshi)

● Biden: Those responsible for the "chaos" at Silicon Valley Bank will be held accountable and supervision of large banks will be strengthened

U.S. President Biden posted on Twitter that he was pleased that the Treasury Department quickly resolved the problems of Silicon Valley Bank, and that the Treasury Department would continue to hold those responsible for "this mess" accountable and planned to continue its efforts to strengthen supervision of large banks.

● CZ commented on the joint rescue of bankrupt banks by US regulators: The rescue will make banks lose the motivation to manage risks

Regarding the joint rescue of bankrupt banks by US regulators, Binance founder and CEO Changpeng Zhao (CZ) tweeted that once regulators implement a rescue for a bank, it will be caught in a dilemma. If no rescue is carried out, it will not be in line with the proposition of "protecting consumers". If a rescue is carried out, the bank will lose the ability to manage risks, which will in disguise encourage greater and greater risks, leading to more rescues.

● Circle CEO: Deposits in SVB are confirmed to be 100% safe, USDC liquidity operations will resume on Monday

Circle CEO Jeremy Allaire tweeted that due to the joint protection actions taken by US regulators, Circle's deposit confirmation at Silicon Valley Bank (SVB) will be 100% safe, so 100% of USDC reserves are also safe and secure, and Circle will transfer the remaining SVB deposits to BNY Mellon. USDC liquidity operations will resume after banks open on Monday morning.

● HSBC Holdings and JPMorgan Chase are exploring acquisition of Silicon Valley Bank's UK branch

HSBC Holdings is exploring the acquisition of Silicon Valley Bank UK. An insider said the deal is still uncertain and the Bank of England may make a decision to put Silicon Valley Bank UK SVB UK into bankruptcy proceedings in the next few hours. US banking giant JPMorgan Chase is also bidding for the acquisition. It is reported that British commercial lenders Oaknorth Bank, Bank of London, Barclays and Lloyds Bank are in talks to acquire Silicon Valley Bank UK. (Sky News)