Technology companies hit by the collapse of Silicon Valley Bank can breathe a little easier.
On the one hand, the billionaires in the technology industry have come to the rescue:
Sam Altman (Sam Altman), the CEO of OpenAI, the company behind ChatGPT, was revealed to have provided financial assistance totaling more than $1 million to companies that were unable to pay salaries due to Silicon Valley Bank.
And I don’t need any IOUs or documents, just say “pay me back when you have money”.
On the other hand, U.S. regulators have identified the bottom line.
According to a joint statement issued by the U.S. Department of the Treasury, the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC), Silicon Valley Bank depositors “can access all funds starting Monday, March 13.”
However, “any losses associated with resolving SVB’s problems will not be borne by taxpayers.”
The big guy is on the line to help, Fed wipes his ass
The ChatGPT boss reached out to help, the CEO of AI start-up Rad AI told Reuters.
The CEO named Doktor Gurson claimed to be unfamiliar with Altman——
Sam Altman is not an investor in the startup. Gurson only met Altman once, at a Y Combinator event in 2014.
And the reason why he asked Altman for help was a bit like going to the doctor in a hurry:
The company’s money in the Silicon Valley bank account has been failing to be transferred out, and the employees’ wages are about to fail. At this point, Gurson saw Altman’s tweet. The latter called on investors to help the affected technology companies as soon as possible on their Twitter account.
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He emailed Altman. Unexpectedly, after only 1-2 hours, the CEO of OpenAI replied to the letter for help, and promised to provide at least 6 figures of emergency funds, “without any other requests.”
Gurson conservatively estimates that Altman has given over $1 million to aid entrepreneurs like himself.
Sam Altman’s brother, Jack Altman, also confirmed the incident on Twitter.
Sam has been sending money to struggling startups without asking for any documents, telling them to “pay me back when you have money”. It’s a legend.
In addition, according to Reuters, Y Combinator also invited 3500+ CEOs and founders to sign a petition calling on U.S. Treasury Secretary Janet Yellen and others to provide support for depositors of Silicon Valley Bank.
The latest news today is that the U.S. Treasury Department and the Federal Reserve are planning to launch an emergency loan program to support depositors’ withdrawal requests.
The original text of the joint statement from the U.S. Treasury, the Federal Reserve and the FDIC shows:
Beginning Monday, March 13, SVB depositors can withdraw all funds in their accounts, and any losses related to resolving SVB’s problems will not be borne by taxpayers.
…
Finally, the Federal Reserve Board announced on Sunday that it will provide additional funding to eligible depository institutions to ensure banks have the capacity to meet the needs of all depositors.
It is worth mentioning that the statement mentioned that Signature Bank in New York was also closed due to “systemic risk”.
The FDIC’s takeover statement has also been updated. Previously, the FDIC mentioned that “depositors will receive insured deposits on March 13,” but the FDIC’s insurance limit is only $250,000.
Now, a line has been added to the statement: Customers with accounts over $250,000 should call the FDIC’s toll-free number.
The CEO of Rad AI believes that this news has brought a “collective sigh of relief” to Silicon Valley.
“Honestly, this weekend cost me years of life.”
And Sam Altman also updated his Twitter:
Now, the first task has been solved. We need more regulation of banks.
One More Thing
The impact of the collapse of Silicon Valley Bank has not yet subsided.
Before the market opened on March 13, a number of A-share and Hong Kong-listed companies issued voluntary announcements, declaring their business dealings with Silicon Valley Bank.
Source: IT Home
