Sen. Marco Rubio, R-Fla., is calling on the Department of Treasury to guarantee that hostile foreign adversaries cannot acquire the assets of failed U.S. banks.
In a Wednesday letter to Treasury Secretary Janet Yellen, Rubio cited the current “geo-economic competition” with the Chinese Communist Party as reason to closely monitor the sale of Silicon Valley Bank and Signature Bank assets.
Those prohibited from buying the assets “should include potential buyers whose ownership structure allows undue foreign influence over their operations,” wrote Rubio, vice chairman of the Senate Intelligence Committee.
He also requested that the Committee on Foreign Investment, which Yellen heads, “be prepared to carefully review any covered transactions that result as a part of SVB’s, Signature Bank’s, and others’ potential closures.”
“Beijing rarely allows an opportunity to exploit a crisis to pass by, so CFIUS must work diligently to ensure that promising American firms working in critical technologies do not end up acquired by Chinese conglomerates and others,” he wrote.
The letter comes several days out from Silicon Valley Bank’s collapse, with Signature also closing its doors soon thereafter. According to PBS, both ranked among the worst bank failures in history.
Since then, Swiss investment bank Credit Suisse has suffered significant drops in its stock — worrying investors it could be next. On Wednesday, the stock declined 24%.
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