Sen. Marco Rubio (R-Fla.) on Wednesday urged the Treasury Department to ensure that hostile foreign adversaries do not acquire assets from Silicon Valley Bank and Signature Bank as regulators sell off the failed banks’ assets in an effort to make depositors whole.
“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,” Rubio said in a letter to Treasury Secretary Janet Yellen.
“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,” he added.
Rubio also asked that the Committee on Foreign Investment in the United States (CFIUS) — an interagency committee of Biden Cabinet members that review transactions involving foreign investment in the U.S. — be prepared to review any relevant transactions. As Treasury secretary, Yellen also serves as chairwoman of the committee.
“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,” the Florida Republican said.
He also asked for information on any Silicon Valley Bank or Signature Bank depositors from China, Hong Kong and Macau that can expect to receive reimbursements or relief from the federal government.
Silicon Valley Bank collapsed on Friday and was quickly followed by Signature Bank two days later, becoming the second- and third-largest bank failures in U.S. history.
The Treasury has vowed that depositors will be made whole, as federal regulators sell off the banks’ assets and pull from the Deposit Insurance Fund. However, Yellen has ruled out the possibility of a bailout for the bank’s owners.