Gottheimer lays out demands on how government should deal with Silicon Valley Bank collapse

Rep. Josh Gottheimer (D-NJ), is setting out his demands as to how the Silicon Valley Bank As government officials scrambles to stop financial contagion, it is important that collapse be addressed.

Gottheimer supports the Federal Deposit Insurance Corporation to underline the economic dangers of the meltdown. Federal Reserve, Treasury Department, to help uninsured depositors and increase liquidity in Fed member banks.

BIDEN PROPOSES A NEARLY $7 TRILLION TAX AND-SPEND BUDGET, THAT WOULD NOT STABILIZE DEBT

“We are writing to express our deep concern over the sudden collapse of Silicon Valley Bank (SVB) and the contagion risk this failure poses to small, medium, and regional banks across the country,” Gottheimer’s draft letter was circulated amongst his colleagues.

SVB collapsed Friday after revealing on Wednesday that it had sold a variety of securities at a loss. The mounting crisis has been addressed by federal regulators.

Gottheimer pointed out that SVB was in a difficult economic situation and admitted that SVB’s huge stockpiles were contributing to its turmoil.

“At first glance, it appears that SVB met their capital requirements and had a balance sheet with adequate ratios. That said, SVB