As the Silicon Valley Bank collapse makes headlines for a variety of negative reasons, the Biden administration has pulled up its socks to win public confidence. As per updates, the SVB depositors may reportedly have access to their money as soon as Monday, despite the financial fallout.
According to a PTI report, after receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, the step to give SVB’s depositors access to their money has been approved. In addition to this, consultations with the president and Treasury Secretary Janet Yellen reportedly approved the actions of FDIC to complete its resolution of the Silicon Valley Bank.
“The depositors will have access to all their money starting Monday, that is March 13. No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer,” PTI quoted a joint statement by the Department of the Treasury, Federal Reserve and FDIC, as saying.
It added, “We are also announcing a similar systemic risk exception for Signature Bank, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole.” However, as per the report, the interagency federal statement clarified that the shareholders and certain unsecured debt holders will not be protected.
The Silicon Valley Bank crisis has sent shockwaves throughout the world banking sector, mainly impacting the US economy. While the US government is stepping up to save what little is left, it is also treading carefully as many are suspecting that the government’s practices, especially the US Fed’s policies may have been one of the reasons of the bank’s collapse.
As per the report, a statement by Yellen, the US Federal Reserve Board chair Jerome Powell and FDIC chairman Martin Gruenberg, the “United States’ 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.”
(With PTI inputs)
