Nevertheless, a group of House Republicans led by Rep. David McCormick of Georgia are worried that actions that appear to be benefiting the businesses the bank did business with may actually end up aiding Chinese businesses.
And that raises the question of where any bailout funds might go next, including to the coffers of the Chinese Communist Party, which uses private businesses to fund the government, or to members of the Biden family involved in business deals with Chinese companies, according to a letter McCormick and other Republicans sent President Joe Biden, according to Fox News.
The American people have a right to know if their government is supporting businesses with ties to the Chinese Communist Party, according to McCormick.
"Joe Biden needs to clarify whether his family has received sizable donations from Chinese businesses and whether this affected his decision-making. Simply put, American tax dollars should not be donated to our enemies abroad.
CNBC briefly mentioned the bank's assistance to China earlier this month.
"Having a bank account with SVB enabled entrepreneurs in China to access capital from investors in the United States in preparation for an IPO in the United States.
The expansion of the China-to-U.S. IPO pipeline during the past two years has been constrained by regulatory pressure from both Beijing and Washington, D.C., according to CNBC. Many more links exist. According to a report by China Briefing, the Shanghai Pudong Development Bank and Silicon Valley Bank partnered to form the SPD Silicon Valley Bank.
That business venture, which McCormick referred to as SSVB in his letter to Biden, is what the Republicans found peculiar. The letter stated that "SSVB was established in August 2012 as the first Sino-American collaborative banking organization, with a primary concentration on providing loans to Chinese IT firms."
The letter noted that it was exceedingly troubling and raised severe issues since "both SSVB and SVB have played a vital role in financing China's innovation economy, servicing over 2,000 clients and advising CCP government authorities."
The letter said that "SVB is reportedly helping Chinese companies seek American investment or go public abroad, evading prohibitions on raising cash and going public outside of China."
Republicans subsequently demanded to know if funding from the Federal Deposit Insurance Corporation were supporting Chinese businesses that were entangled in the snares of the Chinese Community Party.
The letter stated that the Federal Reserve, Department of the Treasury, and FDIC "cannot afford to stay asleep at the wheel while the CCP finances its firms with the assistance of U.S. venture capitalists at the expense of American taxpayers."
Republicans were concerned about the Biden family, another influential group. According to congressional investigations, Hunter Biden and other family members have had and still have financial ties to Chinese corporations.
According to the letter, it is "of vital national interest to determine which institutions aligned with the CCP stand to benefit from the U.S. government's support of SBV, and what influence they may have on Executive Branch policymaking as a result," noting concern over "recent revelations that members of the Biden family have received payments from Chinese companies through an intermediary associate."
In order to do this, the letter inquired as to whether Biden family members were receiving payments from businesses that stood to gain financially by the federal intervention in the collapse of Silicon Valley Bank.
Reps. W. Gregory Steube of Florida, Barry Loudermilk, Austin Scott, Rick Allen, and Mike Collins of Georgia; Rick Crawford of Arkansas; Ryan Zinke of Montana; Troy E. Nehls of Texas; Tom Tiffany of Wisconsin; Mark Amodei of Nevada; Doug Lamborn and Lauren Boebert of Colorado; Andy Ogles and Tim Burchett of Tennessee; Ralph Norman and Joe Wilson of South Carolina; and Harriet Hageman of Wyoming also signed the letter.
The letter allowed Biden till the following month to respond; based on his responses, a thorough probe may be conceivable.
