The US Federal Reserve Board of Governors has called for an emergency closed-door meeting on Monday, amid the fallout of Silicon Valley Bank. The meeting that is to be held tomorrow at the Board's offices in Washington will be held through a conference call under expedited procedures.
According to a statement released by the Fed on Sunday, the Board will review and determine the advance and discount rates that will be charged by the Federal Reserve Bank during the meeting.
The need for this Fed meeting could be due to the sudden collapse and FDIC seizure of SVB Financial Group on Friday.
Briefing for California's congressional delegation
According to a report by Mint, the Federal Deposit Insurance Corp and the US Federal Reserve plan are expected to brief California's congressional delegation on the crisis on Saturday at 11 pm.
Silicon Valley Bank Crisis
The Silicon Valley Bank operates as a full-service bank that makes loans, accepts deposits, provides treasury management, online banking, foreign exchange trade, banking across international borders and multiple other services.
The bank based in Santa Clara came into crisis after its parent organisation, the SVB Financial Group on Wednesday announced the sale of $21 billion of its securities that were a part of its portfolio. The company had also announced that it will hold a sale of shares totaling to $2.25 billion to shore up its finances.
The move was in order to deal with high deposit outflow at the bank due to a downturn in the start-up industry. Additionally the bank also reported a decline in the net interest income.
