Federal financial regulators are moving to reassure depositors at Silicon Valley Bank with a special backstop as they pursue the failed bank's sale through an auction.
, which was the nation’s 16th-largest bank prior to its insolvency last week, had been a go-to financial institution for Silicon Valley technology firms and companies backed by the area’s venture capital sector. It failed amid a liquidity crunch that came about as depositors needing cash withdrew funds, which forced the bank to sell bonds at a loss to cover withdrawals and stymied the firm’s efforts to raise additional capital to stave off the bank run.
Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and FDIC Chairman Martin Gruenberg announced a special systemic risk exception to the FDIC's depository insurance to protect depositors at Silicon Valley Bank on March 12, 2023. In a move to stave off concern that SVB’s insolvency could prevent start-ups and other businesses that had uninsured deposits with the failed bank from making payroll or continuing their operations, the FDIC in concert with the Treasury Dept. and Federal Reserve announced a systemic risk backstop under which all SVB depositors will be protected.A customer stands outside of a shuttered Silicon Valley Bank headquarters on March 10, 2023, in Santa Clara, California.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Silicon Valley Turned on Silicon Valley BankThe fallout from Silicon Valley Bank threatens to engulf Silicon Valley—and has put the rest of the banking system on edge
Read more »
Feds Could Protect All Silicon Valley Bank Deposits Amid Search For Buyer, Reports SaySilicon Valley Bank collapsed on Friday, causing its customers to scramble—and most of the bank’s deposits were uninsured.
Read more »
Silicon Valley Bank clients will have access to funds, Feds announceU.S. government says all Silicon Valley Bank clients will have access to funds, announces steps to prevent more bank runs.
Read more »
Silicon Valley Bank customers will have access to funds Monday, feds sayThe U.S. government took emergency steps Sunday and assured clients of the failed financial institution that they would be able to recover all of their money quickly.
Read more »
Silicon Valley Bank seized by FDIC, marking largest shutdown of a US bank since 2008BREAKING: The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank, marking the largest bank failure since Washington Mutual in 2008.
Read more »