FDIC Will Protect All Silicon Valley Bank Deposits After Sudden Collapse, Treasury Says
(Worthy News) – Federal regulators will safeguard all deposits at Silicon Valley Bank, including money that isn’t normally covered by federal deposit insurance, the Treasury Department announced Sunday evening, a rare and sweeping move just days after the tech-focused bank rapidly collapsed.
Account holders will be able to access all of their deposits on Monday, the Treasury, Federal Reserve and Federal Deposit Insurance Corporation said in a statement.
The FDIC usually only insures $250,000 per account, but it can use its funds to protect uninsured deposits if the Treasury Secretary and two-thirds of the FDIC and Federal Reserve boards determine there is a “systemic risk” to the financial system—a move that federal officials appeared to take Sunday. [ Source (Read More…) ]
Regulators close New York’s Signature Bank following Silicon Valley Bank collapse
The New York Department of Financial Services announced Sunday that it has taken possession of Signature Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver. The move comes two days after Silicon Valley Bank collapsed as depositors rushed to withdraw funds.
At more than $110 billion in assets, Signature Bank is the third-largest bank failure in U.S. history, the Associated Press reported.
The bank is FDIC-insured and had assets of around $110.36 billion, with total deposits of about $88.59 billion as of Dec. 31, 2022, DFS said in a statement. Both figures were roughly half of what SVB had at the end of 2022, according to the FDIC. [ Source: CBS News (Read More…) ]