Government officials said «no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.»
The U.S. Treasury Department on Sunday announced a measure to strengthen the public’s confidence in the country’s banking system following last week’s collapse of Silicon Valley Bank (SVB) and Sunday’s seize of Signature Bank. That’s insuring depositors got their money, but with no extra burden on taxpayers.
Top officials said they intend to make sure all depositors for SVB have access to their funds as do the depositors for Signature Bank.
A joint statement from Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg on Sunday evening said all depositors will have access to their funds on Monday, March 13, and that «no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.»
The joint press release on the Federal Reserve Board’s website stated that Yellen and Powell consulted with President Joe Biden before making their announcement. It also says it «approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.
