SAN JOSE, Calif. (March 12, 2023) — The Silicon Valley Leadership Group (“SVLG”), on behalf of its 350+ member companies representing the innovation economy and its ecosystem, today applauded the joint statement of the U.S. Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (“FDIC”) to insure all deposits at Silicon Valley Bank (“SVB”), or its successor institution, including those above $250,000. The following is a statement from Ahmad Thomas, SVLG CEO.
“I want to thank the U.S. Department of the Treasury, the Fed, and the FDIC for moving swiftly to support federal action that will insure all deposits at Silicon Valley Bank, including those above $250,000. These deposits are critical for making payroll and supporting both the people and businesses associated with our innovation economy and its ecosystem here in Silicon Valley.
“SVB has played a critical role as a key community and financial partner in fueling the economic vibrancy of not only our region, but also in supporting jobs and the job creators across the nation that underpin the U.S. position of global technology leadership. SVB is no ordinary financial institution, and that’s why these circumstances necessitate an urgent response from our leaders in Washington, D.C. to provide stability for current account holders and to prevent more systemic impacts to regional banks, impacted companies, and communities.
“Without these actions, the impacts could have spread far beyond Silicon Valley and the innovation ecosystem. Main street businesses that employ tens of thousands of people rely on these companies to support their operations and would have been put in jeopardy. And, some of the nation’s most dynamic companies were facing the reality that they wouldn’t have been able to make payroll, that service to the cities and communities they call home could be halted, and other ripple effects like closures and layoffs may have become the reality.
“Such a cascading series of events would have imperiled thousands of jobs nationwide, while simultaneously placing the nation’s innovation economy and our position of global technology leadership at risk.
“We recognize that beyond the immediacy of this situation, the scope and scale of this challenge will warrant additional focus and dialogue. SVLG members are uniquely suited to be productive partners with the Administration on paths forward. We stand as a ready resource and join our members in our commitment to America’s competitiveness, driven by the tech and innovation sectors.”
About the Silicon Valley Leadership Group:
The Silicon Valley Leadership Group (SVLG) was founded in 1977 by one of Silicon Valley’s pioneers, David Packard. Today, SVLG serves as the nation’s most effective and dynamic business association representing the innovation economy and its ecosystem. As we strive to bolster the business competitiveness of the region, SVLG is establishing a new vision of corporate citizenship and working to catalyze a more inclusive, equitable and sustainable future for Silicon Valley and beyond. Our members’ vision of leadership embodies accountability, equity, inclusion, and environmental stewardship, and we’re applying an entrepreneurial mindset to solving the toughest challenges facing both our nation and the region.