Another Global Blow to Crypto Funds as Signature Bank Collapses After Silicon Valley Bank
Second, American Bank Signature Bank has now collapsed after Silicon Valley Bank. The U.S Regulators are in a panic mode now, and the Tremors of the same are likely to be felt in India in in startups, are worried and as much as the banks are trying to convince all their clients to not pull out. There is certainly a state of panic over deposits funding cloud and the tech industry in particular. That is worried, because this is the biggest customer of the Silicon Valley Bank, with a large number of Indian startups uh that service U.S clients having Accounts at that bank. Meanwhile, UK firms that are also awaiting the governments help after U.S Bank collapse, but this meltdown. That is a huge concern for the Indian markets as well. Well, have Akash Jindal join us shortly to explain to us what this means, especially for Indian startups, and how the Panic has set in uh just to get you details of how several Indian startup Founders, who had Accounts at the Silicon Valley Bank and had more than 2 lakh fifty thousand dollars parked. There is now a matter of huge concern for them. I believe Rohit srivastav, who is the founder of Indian charts indiacharts.com, is joining us on the broadcaster Rohit. Thank you for speaking to us. This is the second Bank. After the Silicon Valley, Bank crisis and uh, the Meltdown that uh is now leading to consequences, especially for the Indian markets and Indian startups, because there is a huge state of panic, explain to us what this means.
Well, first things: first over the weekend and this morning I think the Federal Reserve is already given guarantees for all the deposits that were with the bank. So I think uh. That is not the real big issue right now, uh. It should blow over uh people uh. Maybe fearing feeling fearful because of a lot of news flow over the weekend uh, but I think uh what they have done: sort of backstops uh. The potential for any such Bank runs that happen ahead. I mean this was a particular bank with a particular case where they had, you know done this asset liability, mismanagement which in India is absolutely not possible in banking uh. So I mean even any firms in India that would have had money with them. I think they will get their money in due time, so uh, so theres, no real reason to panic on this particular issue. People may Wonder also about you know whether they this this kind of an event, can happen ahead. I think they also put a facility for funding deposit withdrawals in future. So sort of this takes care of uh any potential Fallout from the same and then all eyes really shift towards what the Federal Reserve is going to do at its rate. Setting meeting over the next two days, so I think thats, the real uh next big thing to watch out for uh Indian markets. Therefore, uh are: why are they really weak if this has been resolved, because you can actually see Dow futures up uh over a percent uh, the NASDAQ over two percent in the Futures? Our Market is still reeling under some pressure.
It may have to do uh with the ongoing weakness that weve seen over the last two to three months, that doesnt seem to be ending uh. We are going to need to look at some kind of domestic cues to help us over here. I think uh more than just what is happening with saline Valley. Bank uh also explained to us rohitha, as I was mentioning that Indian startups in particular are worried and it is the tech industry that is the biggest customer for the Silicon Valley Bank um. With the result, how will this uh impact them uh to be more precise and what is the waiting period that should be like or that you preempt at this point uh, given that uh, you know, we are still trying to understand how the Meltdown and what is The likely consequence going to be so there are two steps I think within uh in within matter of days. I think they want to settle all the deposits is, I think, the intention, so it should happen pretty fast. I dont think theres going to be a long lag time because uh many uh Tech startups around the world are involved and uh business needs to continue as usual uh. The only thing which will happen is the existing assets of the bank itself may get sold to other bidders, which is already that process is already in place. So I think its not a worry Beyond. I think a weeks uh period of you know finances coming back to any startup set of money over there so its, which is why I dont think its a big concern, its just a matter of days that you know it sort of settles down all right.
I want to thank you at the moment for uh breaking down those details for us, of course, tracking the situation very very closely and most importantly, uh – to understand how this affects India, but for the moment uh, we close it right here.