“SVB’s unusually cozy relationship with its clients increased the threat of contagion...,” Sen. Warren said. “The American people deserve to know…what role [this] played in SVB's failure.” Dems demand answers over SVB relationships with clients:
In letters reviewed by Bloomberg that were sent to companies including Circle Internet Financial, BILL Holdings Inc., BlockFi Inc. and Eiger BioPharmaceuticals Inc., Warren and Ocasio-Cortez asked questions about the nature of their connections with SVB. Those included the length of their relationship and the amount of money they had deposited with the bank, which collapsed in March after investors and depositors tried to pull out $42 billion in a single day.
In particular, the lawmakers are interested in reports that said SVB coddled some of its largest venture capitalists and showered them with special perks, and in return the VC firms gave the bank access to huge unsecured sources of short-term funding, the letters said. The lawmakers asked for the answers to these questions to be provided by April 24.
A Roblox spokesperson said in an email the company received the letter and “consistent with our process, will be replying in a timely manner.” The other 13 companies didn’t immediately respond to requests for comment.
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