U.S. financial regulators on Sunday said Silicon Valley Bank customers would have access to all their money on Monday, days after the bank failed.
Thank you for reading this post, don't forget to subscribe!Announcing new steps, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation said their moves would “ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
The FDIC will be able to complete its resolution of Silicon Valley Bank
SIVB,
“in a manner that fully protects all depositors,” a joint statement said. “Depositors will have access to all of their money starting Monday, March 13,” the statement added, and no losses will be borne by U.S. taxpayers.
“The American people and American businesses can have confidence that their bank deposits will be there when they need them,” President Joe Biden said in a statement Sunday night. “I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”
Read more: Full text of Treasury, Fed and FDIC joint statement on SVB and Signature Bank
Signature Bank in New York was closed Sunday by its state regulator, the joint announcement said. “All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” said the joint statement.
Read: Crypto-friendly Signature Bank shut down by regulators after collapses of SVB, Silvergate
Separately, the Fed said it would make additional funding available to banks to ensure they meet depositors’ needs through a new “Bank Term Funding Program.”
See: Fed announces new emergency loan program for banks to ease contagion risk from Silicon Valley Bank
Under the new program, banks and other lenders will be able to pledge Treasurys and mortgage-backed securities for cash. Banks can pledge collateral at par.
This will eliminate the need for a bank to quickly sell its assets in times of stress.
The central bank said “it is prepared to address any liquidity pressures that may arise.”
In a separate statement Sunday, Securities and Exchange Commission Chair Gary Gensler said regulators are monitoring markets amid the recent turmoil. and promised to prosecute “any form of misconduct that might threaten investors, capital formation, or the markets more broadly.”
Greg Robb contributed to this story.
