FED and FDIC take control and confirm that the deposit will be available Monday.
Releads with Sunday evening announcement by federal regulators
By Andrea Shalal, Sarah N. Lynch and Lananh Nguyen
WASHINGTON, March 12 (Reuters) – Silicon Valley Bank SIVB.O customers will have access to their deposits starting on Monday, U.S. officials said on Sunday, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of the tech startup-focused lender.
The boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, in consultation with President Joe Biden, approved the FDIC’s resolution of SVB, according to a joint statement from U.S. Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and FDIC Chairman Martin Gruenberg on Sunday evening.
The move will not lead to losses by American taxpayers and all deposits will be made whole, the statement said.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the statement said. “This step will 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 Federal Reserve also said Sunday it would make additional funding available through a new Bank Term Funding Program, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.
The officials also said that depositors of New York’s Signature Bank, which was closed Sunday by the New York state financial regulator, would be made whole at no loss to the taxpayer.