Bankrupt Silicon Valley Bank depositors to have access to funds on March 13

All depositors of the bankrupt Silicon Valley Bank will be able to access their funds starting Monday, March 13. According to RBC, this is stated in a joint statement by the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation.

This will also apply to the New York Signature Bank, closed on March 12 on Sunday by decision of the relevant state body. It became the third major financial institution to be closed after the collapse of Silicon Valley Bank (on March 8, the parent company Silvergate Capital Corporation announced the curtailment of operations of another bank working with the cryptocurrency Silvergate Bank).

The regulators said that the US authorities “are taking decisive action to protect the US economy by strengthening public confidence in the banking system.” The Fed and the Treasury Deposit Insurance Corp. stressed that the US banking system remains resilient “in large part because of the reforms introduced in the aftermath of the financial crisis, which provided stronger protection for the banking industry.”

The Fed said in a separate statement that it is creating a “Term Bank Funding Program” aimed at protecting financial institutions hit by the SVB collapse.

Silicon Valley Bank has become the largest US bank to fail in the 15 years since the 2008 crisis. SVB ranked 16th in terms of assets in the country and was one of the most prominent lenders in the tech start-up industry. On March 12, the Ministry of Finance announced that the authorities would not bail out a bankrupt bank and buy bad loans from SVB.

On March 12, the White House released a statement from President Joe Biden saying that the Treasury and the FCS were working to resolve the SVB issue at the direction of the head of state, their actions “ensure that taxpayer dollars are not at risk.” The President also promised to bring to justice those responsible for the SVB bankruptcy.