U.S. Government: Silicon Valley Bank and Signature Bank Clients Will Get Funds
By Hamodia Staff
In a joint statement by the Department of Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), it was announced late Sunday afternoon that depositors of Silicon Valley bank will be able to access their funds starting Monday morning, March 13. No losses of the resolution of the bank failure will borne by US taxpayers, the statement said.
At the same time, with the announcement that regulators of the New York State chartering authority have closed Signature Bank, the depositors will have full access to their funds, and no losses will be borne by taxpayers.
Shareholders and unsecured debtholders will not be protected, and senior management has been removed.
Losses to the FDIC will be recovered by a special assessment on banks, as required by law.
The Federal Reserve Board will make funds available to banks in order to ensure they can meet the needs of their depositors.
The statement ended by declaring that due to reforms made during the financial crisis, the US banking system remains resilient and on a solid foundation.
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