Regulators said Silicon Valley bank depositors will have access to all of their money on Monday.
Photo: Jeff Chiu/Associated Press Updated March 12, 2023 6:30 p.m. ET
Federal regulators rolled out contingency measures Sunday night to contain potential side effects of Friday’s rapid collapse of Silicon Valley Bank, including measures to safeguard all depositors.
Regulators announced the measure in a joint statement by Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corp. Chair Martin Gruenberg. The group said depositors at the SVB will have access to all of their money on Monday.
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“After receiving a recommendation from the boards of directors of the FDIC and the Federal Reserve, and in consultation with the President, Secretary Yellen approved actions that will enable the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner consistent with the… Protection fully guaranteed to all depositors,” they said. “Depositors will have access to all their money from Monday March 13th. No losses related to the Silicon Valley Bank resolution will be borne by the taxpayer.”
The Fed said it will provide additional funding to banks to ensure they are “able to meet the needs of all depositors” through a new “Bank Term Funding Program” that will provide banks, the US promise to offer loans with a term of up to one year will provide government bonds, mortgage-backed securities and other collateral.
Regulators also said Signature Bank was closed on Sunday. The New York bank’s depositors would be made whole, they said.
Updates will follow as news develops.
Write to Nick Timiraos at [email protected]
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