SVB Bank Crisis: Federal Reserve, Treasury Department and FDIC Take Steps to Protect Depositors Amid Meltdown
variety.comCynthia Littleton Business Editor The federal government has stepped up efforts to contain the damage of the collapse of Silicon Valley Bank by assuring that all depositors to the bank will have access to all of their money as of March 13.
The Treasury Department, Federal Reservce and FDIC put out a joint statement on Sunday to assure markets that all SVB depositors will be protected from losses as the bank faces an exodus of customers.
The statement also reinforced that the government’s safety net does not extended to SVB shareholders, senior managers or “certain unsecured debtholders.” “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the statement ready. “After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.
Depositors will have access to all of their money starting Monday, March 13.” The statement comes after Yellen faced tough questioning on today’s Sunday morning public affairs shows about the federal government’s response to the swift demise of SVB, which catered to the tech industry and venture capital-fueled start up venture.
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