House Republicans Say SVB Rescue Should Not Benefit China: Letter

In a letter to President Joe Biden, House Republicans stated that the Chinese Communist Party ( CCP) should not gain from the U.S. government’s rescue of Silicon Valley Bank( SVB ).

GOP lawmakers asked for an investigation into the CCP’s involvement in SVB, a California-based financial organization that went out of business earlier this month, and to find out how the federal government may use taxpayer money to restructure its businesses.

The letter, which Fox News first obtained( pdf ), contained 19 co-signers and cited reports that SPD Silicon Valley Bank, a subsidiary of SVB Financial and the state-owned Shanghai Pudong Development Bank. The House of Republicans is investigating which Taiwanese companies were associated with SVB and how much of their assets and money were deposited there.

The email stated that it is particularly troubling and raises serious questions that SSVB and SVB have both played a crucial role in financing China’s development business, serving over 2, 000 people and providing advice to CCP government officials. According to reports,” SVB helps Taiwanese businesses obtain American commitment or go public abroad, thereby avoiding limitations on raising money and listing outside of China.”

Republican lawmakers are also questioning whether there are any financial ties between Chinese companies with SVB holdings and members of the president’s family, according to a letter written by Rep. Rich McCormick( R-Ga. ).

The Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation ( FDIC ) all stated in the letter that they” cannot afford to be asleep at the wheel.” The CCP also supports its businesses” at the cost of British taxpayers” with the assistance of U.S. venture capitalists.

The Democratic co-signers gave the White House a deadline of April 3 to deliver responses, supporting documentation, and other details.

According to sources, the Biden administration was looking into whether SVB’s loss put more strain on Chinese tech companies than the Beijing government next week.

Did the SVB rescue edge China?

Most Republicans have expressed concern that those with ties to the Chinese government would be included in the billions spent to bail out international unemployed or uncovered payments following the SVB and Signature problems.

Sen. Marco Rubio( R-Fla. ) wrote in a letter to Treasury Secretary Janet Yellen,” I ask the department to ensure that foreign adversarial regimes and businesses under their jurisdiction are unable to exploit this moment for their own material benefit.”

Sen. James Lankford( R – Okla. ) asked Secretary Yellen if Chinese and foreign depositors from Silicon Valley Bank would be made whole following the U.S. government’s intervention when he appeared before the Senate Finance Committee on March 16.

She said,” I suppose that may include international depositors.” ” I don’t think discrimination against the insured has any legal justification.”

It was discovered that SVB had numerous Taiwanese accounts in the days that followed its problems. A statement from SPD Silicon Valley Bank stating that its services were” sound” was issued.

According to the industry,” The lender has a standardized corporate governance architecture and an active balance plane.”

SVB established an office in Beijing in 1999 to provide customer support and consulting services to venture capitalists and technology companies, bringing the company’s initial exposure to China.

At a distinct cheap of$ 16.5 billion, First Citizens, however, bought about$ 72 billion of SVB’s property. The$ 90 billion in securities and other assets owned by the struggling bank will still be subject to U.S. government disposition, according to the FDIC.

According to the FDIC, the estimated cost of SVB’s collapse to its Deposit Insurance Fund ( DIF ) would be around$ 20 billion. After the bankruptcy is over, the last total will be calculated.