Former Obama economic adviser and former CEO of UBS Robert Wolf breaks down the historic collapse of Silicon Valley Bank and the economic fallout that has followed on ‘Fox & Friends Weekend.’
Depositors of the Silicon Valley Bank will have access to all of their money – following the bank’s failure on Friday – at no loss to American taxpayers, the Treasury Department, Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) said in a joint statement Sunday.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement read. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
FILE: A worker (C) tells people that the Silicon Valley Bank (SVB) headquarters is closed on March 10, 2023 in Santa Clara, California. (Justin Sullivan/Getty Images / Getty Images)
The statement said Treasury Secretary Janet L. Yellen had approved actions enabling the FDIC to complete its resolution of SVB “in a manner that fully protects depositors.”
Depositors will have access to all of their money starting Monday, March 13. The taxpayer will bear no losses associated with the resolution of SVB.
Notably, the regulators’ statement also announced the shutdown of New York-based Signature Bank.
“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,” the joint statement read.
FORMER CEO OF UBS ISSUES HARSH WARNING ON SVB COLLAPSE: THIS WILL CONSUMERS ‘A LOT OF ANXIETY’
Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
The Federal Reserve said it would make additional funding available to “eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.”
A customer stands outside of a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. (Justin Sullivan/Getty Images / Getty Images)
“The U.S. 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,” the regulators said. “Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors savings remain safe.”
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Silicon Valley Bank, the nation’s 16th-largest bank, failed Friday after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It was the second-biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.
The Associated Press contributed to this report.
