Sunday, March 12, 2023

US Treasury Guarantees All SVB Deposits

In a swift move, the U.S. Treasury said on Sunday that it will guarantee all deposits of Silicon Valley Bank--including all deposits in excess of the $250,000 FDIC insurance limit--and will make those funds available on Monday, in a bid to limit the impact of the failure of the largest bank failure since 2008. In a joint statement from the Department of the Treasury, Federal Reserve, and FDIC, the departments said that any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, and emphaized that no losses associated with the move will be borne by taxpayers. The U.S. Treasury said it will also make available "additional funding to eligible depository institutions" to help assure banks have the ability to meet the needs of all their depositors.