U.S. regulators announced
that all Silicon Valley Bank’s depositors, including those not insured
by the Federal Deposit Insurance Corp. (FDIC), will have access to their
money starting today, March 13.
The FDIC, which took over the tech-focused lender on Friday, said none of the associated losses will be borne by taxpayers.
- Instead,
the money will be drawn from the FDIC's Deposit Insurance Fund (DIF),
which includes fees that banks pay to cover operating costs and resolve
failed banks, President Joe Biden said.
- During remarks today, Biden said the U.S. "banking system is safe” and “your deposits will be there when you need them.”
- This
covers depositors whose holdings exceed the $250,000 insurance limit.
As of this morning, some venture capitalists and startup founders confirmed that they had regained access to their accounts.
- Meanwhile,
the Federal Reserve has announced a new lending facility to provide
additional funding to eligible institutions to make sure “banks have the
ability to meet the needs of all their depositors."
- HSBC UK has now agreed to purchase Silicon Valley Bank's U.K. division for £1 to prevent its collapse in the country.
- Regulators
seized Silicon Valley Bank and placed it into receivership on Friday,
marking the largest U.S. bank failure since 2008 and the second largest in U.S. history.
- The takeover occurred a day after the bank’s customers attempted to withdraw $42B in a single day.
