The U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corp. said Sunday they would fully backstop the deposits of Silicon Valley Bank. Meanwhile, people familiar with the matter said regional banks are the likeliest bidders to prevail in the sale process for SVB, as the FDIC sorts through the wreckage of the failed bank.
Treasury Secretary Janet Yellen "approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank...in a manner that fully protects all depositors," according to a press release. "Depositors will have access to all of their money starting Monday, March 13." Regulators also said they had made a similar move to backstop Signature Bank, which they said was closed on Sunday by the New York state chartering authority. All Signature depositors will also be made whole.
The regulators said no losses stemming from the resolutions of either bank would be borne by taxpayers.
