U.S. Sen. Marco Rubio (R-FL) is urging the U.S. Secretary of the Treasury Janet Yellen to consider the potential national security implications of selling assets from recently failed banks.
Rubio said the collapse and closure of both Silicon Valley Bank (SVB) and Signature Bank raise the possibility that some of the assets could end up in possession of hostile, foreign adversaries, including the Chinese Communist Party.
“As the Department of Treasury continues to respond to the recent closures of Silicon Valley Bank (SVB) and Signature Bank, as well as related, ongoing challenges in the United States economy, I write to urge the department to prioritize United States national security, and, in particular, our geo-economic competition with the People’s Republic of China (PRC), in its response. Specifically, I ask the department to ensure that foreign adversarial regimes, as well as companies subject to their jurisdiction, are unable to exploit this moment for their own material benefit,” Rubio wrote in a letter to Yellen.
He requested that the Committee on Foreign Investment in the United States (CFIUS) review any covered transactions resulting from these bank closures.
“Furthermore, it is my understanding that SVB was a significant lender to Chinese start-ups, as well,” Rubio added. “The bank had participated in a joint venture in the PRC with Shanghai Pudon Development Bank, playing an outsized role in funding early-stage Chinese companies. This includes biotech groups and life-sciences technology firms operating in both the United States and the PRC. As the Department of Treasury, in tandem with the Federal Reserve and the FDIC, continues its response, I request information from the Department of Treasury regarding depositors from the PRC, including Hong Kong and Macau, that can expect to receive federal reimbursements from the Deposit Insurance Fund and other federal relief.”