Regulators Shut Down Second Bank In Race To Contain Fallout From Silicon Valley Bank Collapse

Federal regulators stated over the weekend that Silicon Valley Bank will fully back all depositors, guaranteeing that they are fully compensated after the bank’s collapse last week.

The announcement late Sunday afternoon came from Treasury Secretary Janet Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg.

Federal agencies also disclosed that New York state officials closed a second bank on Sunday.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” The statement was as follows: “All depositors of this institution will be made whole.  As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”

SVB has announced a $1.75B share Sale On Wednesday, the company suffered severe losses due to the liquidation of a $21 million bond portfolio. This raised concerns among startups and venture capital firms about the safety of their assets. SVB, the 16th-largest bank in America and the largest Silicon Valley bank, lends to almost half of all venture-backed tech and healthcare companies.

Federal Deposit Insurance Corporation stated Friday that SVB has been shut down by the California Department of Financial Protection and Innovation.

This is breaking news. Keep checking the page for new updates. 

“From Second Bank Shut down by Regulators In A Race to Contain the Fallout from Silicon Valley Bank Collapse“

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