Schiff says there's 'profound concern in California' over Silicon Valley Bank collapse

Rep. Adam Schiff (D-Calif.) said on Sunday that there there is "profound concern in California" about the health of the economic sector after the collapse of the Silicon Valley Bank.

Federal regulators seized the California-based bank on Friday, and put the institution up for auction over the weekend, multiple news agencies reported. The closure of the bank sent ripples into the tech-world as depositors were unsure of how much money they could get back.

"I would add that also there's profound concern in California, given that this sector is such an important part of our economy, that is the entrepreneurial sector," Schiff told CNN's Jim Acosta.

Schiff said that the best outcome would be if another bank takes over the Silicon Valley Bank's assets and portfolio. He said the most urgent priority is making sure people get their paychecks so that they could provide their families.

Schiff also said federal agencies should examine the possibility of pausing the interest rate hikes by the Federal Reserve Board. He questioned whether other institutions will be in "jeopardy" as a result of the interest hikes.

Treasury Secretary Janet Yellin and both Democrat and Republican lawmakers said on Sunday that they oppose a potential bailout of Silicon Valley Bank.

Federal agencies announced on Sunday that Silicon Valley Bank customers will be able to access all of their money starting on Monday at no cost to the taxpayer.  

The three agencies said in their joint statement that the Federal Reserve will make additional funding available to eligible institutions “to help assure banks have the ability to meet the needs of all their depositors.”