The sudden collapse of Silicon Valley Bank — the biggest bank failure since the 2008 recession — and increasingly strained U.S. relations with China, Russia and other adversaries will likely dominate the Sunday shows circuit this weekend.
Silicon Valley Bank, which largely catered to tech startups, was swiftly closed down by regulators after it collapsed on Friday morning.
The bank’s downward spiral began late Wednesday, when it announced that it needed to raise $2.25 billion in order to shore up its balance sheet. The announcement triggered a panic, and customers rushed to pull out their funds on Thursday.
The California Department of Financial Protection and Innovation ultimately stepped in to end the bank run on Friday, seizing the bank and handing it out over to the Federal Deposit Insurance Corporation (FDIC). The FDIC created a National Bank of Santa Clara to hold the failed bank’s deposits and other assets.
As an FDIC-regulated bank, Silicon Valley Bank’s customers are insured for up to $250,000 per account with the bank. While the FDIC has said that customers should be able to access their insured deposits no later than Monday, the vast majority of the bank’s deposits were uninsured.
At the end of 2022, 89 percent of Silicon Valley Bank’s $175 billion in deposits was uninsured, according to Reuters. Those with uninsured deposits will receive a “receivership certificate” for the remaining funds, and dividend payments “may be made” as the bank’s assets are sold off, according to the FDIC.
The bank’s swift collapse appears to be at least partially rooted in the Federal Reserve’s recent interest rate hikes. The hikes, levied in an effort to tame soaring inflation, hit the technology sector quite hard. As Silicon Valley Bank’s startup clients pulled out their money to stay afloat, the bank fell short on capital.
Treasury Secretary Janet Yellen, who is set to join CBS’ “Face the Nation” on Sunday, met with banking regulators on Friday to discuss the handling of Silicon Valley Bank’s collapse.
“Secretary Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event,” a readout of the meeting said.
Cecilia Rouse, the chair of the Council of Economic Advisors, also emphasized on Friday that the American banking system is more resilient than it was during the 2008 financial crisis, amid concerns about a broader decline in the industry.
“We are in a fundamentally different position with the reforms of the global financial crisis of 2007, 2008,” Rouse said at a White House press briefing. “We’ve put in place stress tests and other tools that our regulators have to provide more resilience to our banking system.”
Rep. Ro Khanna (D-Calif.), who represents the district where Silicon Valley Bank was based, will also join CBS’ “Face the Nation” to discuss the fallout from the bank’s collapse, while Sen. Mark Warner (D-Va.) is set to chat about the bank failure with ABC’s “This Week.” Former FDIC Chair Sheila Blair will also make an appearance on NBC’s “Meet the Press.”
Strained U.S. relations with China, Russia and other adversaries will also likely be a topic of discussion on the Sunday talk shows this weekend, amid Moscow’s ongoing invasion of Ukraine, a Chinese spy balloon’s week in U.S. airspace, and accusations that Beijing is considering providing Russia with lethal aid.
House Foreign Affairs Committee Chair Michael McCaul (R-Texas) is set to discuss “America’s problems overseas, from Russia and China to Afghanistan” on CBS’ “Face the Nation” on Sunday.
House Intelligence Chair Mike Turner (R-Ohio) will also join ABC’s “This Week” to discuss the “global security threats facing the U.S.,” while Senate Foreign Relations Committee Chair Bob Menendez will make an appearance on NBC’s “Meet the Press.”
Below is the full list of guests scheduled to appear on this week’s Sunday talk shows:
ABC’s “This Week” — Sen. Mark Warner (D-Va.); Rep. Mike Turner (R-Ohio); Jennifer Homendy, chair of the National Transportation Safety Board; Dr. Richard Besser, CEO and president of the Robert Wood Johnson Foundation
NBC’s “Meet the Press” — Sens. Bob Menendez (D-N.J.) and Kevin Cramer (R-N.D.); Sheila Bair, former chair of the Federal Deposit Insurance Corporation
CBS’ “Face the Nation” — Treasury Secretary Janet Yellen; Reps. Michael McCaul (R-Texas) and Ro Khanna (D-Calif.); Gov. Phil Murphy (D-N.J.)
CNN’s “State of the Union” — Rep. Nancy Mace (R-S.C.); Shalanda Young, director of the White House Office of Management and Budget; Vivek Ramaswamy, 2024 Republican presidential candidate
“Fox News Sunday” — Sen. John Kennedy (R-La.); Finnish President Sauli Niinisto
Fox News Channel’s “Sunday Morning Futures” — Speaker Kevin McCarthy (R-Calif.); Gov. Ron DeSantis (R-Fla.); Gov. Kristi Noem (R-S.D.); Rep. James Comer (R-Ky.)