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American regulators are working through the weekend on an extraordinary plan to make Silicon Valley Bank customers whole after the financial institutions’ stunning and rapid collapse late last week, according to Reuters.
Treasury, Federal Reserve and Federal Deposit Insurance Corp. officials over the past two days have worked with the Biden administration to develop facilities that would guarantee all uninsured deposits held by SVB customers, Reuters said.
Officials at the three agencies did not immediately respond to CNN’s requests for comment. The first reported the story, citing multiple sources familiar with the matter.
One way to guarantee the deposits: find another bank to buy SVB. The FDIC opened an auction Sunday for bids to acquire the bank, the Treasury Department said in a briefing with lawmakers in the California delegation, two sources familiar with the briefing told CNN.
Under Secretary for Domestic Finance Nellie Liang and Assistant Secretary for Legislative Affairs Jonathan Davidson led the briefing, during which they told members that the FDIC is prepared “to operate the institution” to ensure depositors can maintain payroll for their employees and that more operations will emerge in coming days, one of the sources said.
