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Israeli Banks Helped Transfer $1 Billion From Silicon Valley Bank BEFORE Its Collapse, Report Says


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According to The Times of Israel, Israel’s two largest banks, Bank Leumi and Bank Hapoalim, helped Israeli firms transfer $1 billion from Silicon Valley Bank before its collapse.

Did they know SVB’s seizure by U.S. federal regulators was imminent?

Via The Times of Israel:

Israel’s two largest banks, Bank Leumi and Bank Hapoalim, set up a situation room that has been operating around the clock to help firms transfer their money from SVB — before it was seized — to accounts in Israel. Over the past few days, teams at LeumiTech, the high-tech banking arm of Bank Leumi, have been able to help their Israeli clients transfer about $1 billion to Israel, the bank said.

LeumiTech said it will provide financing assistance and loans to startups and other tech firms that were left without access to credit lines and liquidity due to SVB’s collapse.

“I promise that we will continue to do everything to help and accompany the companies and startups to safely overcome the challenges and continue to support their growth,” said LeumiTech CEO Timor Arbel-Sadras.

To help tech companies in immediate distress, Poalim Hi-Tech opened a hotline offering bridge loans for the purpose of assisting companies in paying salaries in the coming month against their commitment to transfer deposit funds to their bank accounts in Israel.

Meanwhile, venture capital funds hoping that a fast solution will be found in the form of a buyer that will purchase SVB as a going concern or a federal bailout that will quickly get money to affected depositors.

If Americans Knew reports that SVB is the “go-to lender of technology startups in Israel and the US.”

From If Americans Knew:

Israel’s Ha’aretz newspaper reports that “a good many Israeli companies had been able to get their money out in time, but that it was clearly not the case for everyone” and that “companies whose deposits are now locked will seek to conceal this, concerned that any rumors might drive away customers, suppliers and employees.”

The FDIC has announced an emergency bailout program that will pay depositors 100% of the money they had in the bank. It’s unclear whether this U.S. money will go to Israeli companies.

In addition to serving as a ‘bridge’ between US capital and Israeli tech start-ups, Silicon Valley Bank reportedly also provided funding for Chinese tech entrepreneurs and venture capitalists.

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