According to a new Bloomberg report, in the recent collapse of Silicon Valley Bank (SVB), the Federal Deposit Insurance Corporation (FDIC) allegedly provided billions of dollars to insure deposits for some of SVB’s top customers, who happen to include some of Silicon Valley’s biggest names.
Bloomberg’s report is founded on an FDIC document, which was supposedly obtained through a Freedom of Information Act (FOIA) request. It reveals that Sequoia Capital, a prominent venture capital (VC) firm, along with other firms such as Founders Fund and Andreessen Horowitz, has been identified as a beneficiary of the FDIC’s extended coverage. According to the document, Sequoia, which had a substantial $1 billion deposited with SVB at the time of its collapse, has significantly profited from the FDIC insurance.
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