US financial regulators on Sunday told Silicon Valley Bank SIVB,
savers would have access to “all their money” starting Monday and that no losses related to the bank’s resolution would be borne by US taxpayers.
Read the full statement from the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation:
Washington, DC — The following statement was released by Treasury Secretary Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chair Martin J. Gruenberg:
Today, we are taking decisive action to protect the US economy by strengthening public confidence in our banking system. This move will ensure that the US banking system continues to fulfill its vital role of deposit protection and access to credit for households and businesses in a manner that promotes strong and sustainable economic growth.
After receiving a recommendation from the boards of directors of the FDIC and the Federal Reserve, and after consulting with the president, Secretary Yellen approved actions that would allow the FDIC to pass its resolution of Silicon Valley Bank, Santa Clara, California. in a manner that fully protects all depositors. Depositors will have access to all their money from Monday 13 March. No losses related to the Silicon Valley Bank resolution will be borne by the taxpayer.
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by the state charter authority. All depositors of this institution will be made healthy. As with the Silicon Valley Bank resolution, no losses will be borne by the taxpayer.
Shareholders and certain unsecured creditors will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund supporting uninsured depositors will be recovered through a special assessment against the banks as required by law.
Finally, the Federal Reserve Board announced on Sunday that it will make additional funding available to eligible depositors to ensure banks are able to meet the needs of all of their depositors.
The US banking system remains resilient and on solid foundations, largely as a result of post-financial crisis reforms that enhanced safeguards for the banking sector. These reforms, combined with today’s actions, demonstrate our commitment to taking the necessary steps to ensure that depositors’ savings remain safe.
