The Federal Deposit Insurance Corp (FDIC) is planning another auction for Silicon Valley Bank.
Financial regulators took over the bank on Friday after it could not raise fresh capital following a run on its deposits. On Sunday, the U.S. Treasury, the Federal Reserve, and the FDIC released a joint statement guaranteeing all deposits in SVB and Signature Bank, which regulators shut down on Sunday.
- On Monday, President Joe Biden confirmed the news in a Twitter thread, noting that all depositors would have access to their funds starting Monday.
- The Treasury Department designated both SVB and Signature as systemic risks, giving it authority to unwind both firms in a way that protects all depositors.
- Biden noted that taxpayers would not bear any burden from the banks’ collapse.
- Funds will be paid from the fees banks pay into the FDIC's Deposit Insurance Fund.
- He added that the management of both banks would be fired, and investors in the banks would lose their money.
- Biden noted his administration would get a full accounting of what happened and hold those responsible accountable.
- He said he would ask Congress and banking regulators to strengthen the rules for banks.
