Customers of Silicon Valley Bank will now have complete access to their savings, according to the Biden administration. This remarkable decision by federal officials to support billions of dollars in uninsured money comes amid concerns that the bank's failure might trigger even more panic.
In the aftermath of Silicon Valley Bank's abrupt implosion, federal authorities said on Sunday that they were taking the necessary emergency measures to stop contagion at other local and small banks.
The Associated Press reported that the British Government and the Bank of England in the United Kingdom revealed early on Monday that they had helped smooth the sale of Silicon Valley Bank UK to HSBC, the largest bank in Europe. The action guaranteed the security of deposits worth around $8.1 billion. For the course of the weekend, British officials searched for a buyer for the California-based bank's UK business. The second-largest bank failure in history was caused by its demise.
According to sources, the U.S. rescue plan entails drawing from a sizable pool of government insurance funds that are financed by banks rather than using public money.
Customers of Silicon Valley Bank will have complete access to their funds as of Monday, according to the regulators.
"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system," federal officials said in the statement on Sunday. "This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth."