Bloomberg — US financial regulators moved on Sunday to assure all depositors their money is safe following the collapse of Silicon Valley Bank and set up a new lending program offered by the Federal Reserve with funds from the Treasury Department.
Treasury Secretary Janet Yellen approved the actions, which enable the Federal Deposit Insurance Corp. to resolve SVB “in a manner that fully protects all depositors,” the Treasury said Sunday in a joint statement with the Fed and FDIC.
SVB depositors “will have access to all of their money starting Monday, March 13,” the government said. The statement noted that taxpayers won’t be responsible for any losses associated with SVB’s resolution.
The Fed said in a separate statement that it’s “prepared to address any liquidity pressures that may arise” and is creating a new “Bank Term Funding Program” that offers loans to depository institutions that pledge assets “valued at par.”
The Treasury will “make available up to $25 billion from the Exchange Stabilization Fund as a backstop” for the bank funding program but the Fed doesn’t expect to draw on the funds, it said.
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