It is a colossal move to avoid a possible contagion of the collapse of the Silicon Valley Bank.
U.S. regulators announced on Sunday Mar. 12 that all depositors of the Californian bank will receive their money, thus ending a suspense that threatened to undermine the life of several startups and small businesses.
"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," the regulators said in a statement.
"Depositors will have access to all of their money starting Monday, Mar. 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer," the Department of the Treasury, Federal Reserve, and the FDIC said in the joint statement.
They also said that the Fed "will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors."
They didn't provide more details.
The losses of the shareholders of SVB will not be covered. :-(((
In addition, the three regulators have indicated that they closed another bank on Sunday 12 March. It is Signature Bank, New York, New York.
