Depositors of Silicon Valley Bank will have access to their money starting Monday: Treasury Secretary

After receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve and consulting with the President, Treasury Secretary Janet Yellen on Sunday issued an order enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara. Actions approved. An official statement said that California fully protects all depositors.

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A joint statement issued by the department of finance said, “From Monday i.e. March 13, depositors will have access to all their money. Any loss related to the resolution of Silicon Valley Bank (SVB) will not be borne by the taxpayer.” ” Treasury, Federal Reserve, and the FDIC.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole,” it said.

Shareholders and holders of certain unsecured debt, however, would not be protected, according to the interagency federal statement.

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“Senior management has also been removed. Any loss to the Deposit Insurance Fund to help uninsured depositors will be made good through a special assessment of banks as per law.

Finally, the Federal Reserve Board announced on Sunday that it would make additional funding available to eligible depository institutions to help ensure banks’ ability to meet the needs of all their depositors.

“This step will ensure that the US banking system continues to play its important role of protecting deposits and providing households and businesses with access to the credit that fuels strong and sustainable economic growth,” the statement said.

According to statements issued by Yellen, Federal Reserve Board Chairman Jerome Powell, and FDIC Chairman Martin Gruenberg, the United States’ banking system remains resilient and on sound ground in large part due to reforms undertaken following the financial crisis, which have better ensured Security measures taken for the banking industry

“These reforms along with today’s action demonstrate our commitment to take necessary steps to safeguard depositors’ savings,” he added.

California-based Silicon Valley Bank, the 16th largest bank in the United States, was shut down on Friday by the California Department of Financial Protection and Innovation, which subsequently appointed the FDIC as its receiver.

The text of this story is published from a wire agency feed without any modification.