Silicon Valley Bank depositors will have access to all funds starting Monday: fed agencies
Silicon Valley Bank customers will be able to access all of their funds starting on Monday, federal agencies said in a statement released on Sunday.
“Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” said a joint statement from the Department of the Treasury, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC).
The statement also said 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.”
The agencies also reiterated that the wider banking system “remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry.”
Regulators are also auctioning off Silicon Valley Bank, according to multiple reports Sunday, as part of efforts to contain the fallout of the bank’s historic failure last week.
The statement also announced that depositors of Signature Bank in New York “will be made whole at no cost to the taxpayer.” The bank was closed on Sunday by New York state financial regulators, the statement said.
Federal regulators shut down Silicon Valley Bank on Friday, making it the biggest bank failure since the 2008 recession. Out of the $161 billion deposited at Silicon Valley Bank, 93 percent of it is not insured by the FDIC, a Bloomberg News analysis found.
Both Democrat and Republican lawmakers said on Sunday talk shows that they opposes a potential bailout of Silicon Valley Bank.
Treasury Secretary Janet Yellen also ruled out a bailout of the bank’s owners and investors amid the bank’s collapse on CBS’s “Face the Nation” Sunday.
Updated: 8:00 p.m.
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