US federal government announces it will allow Silicon Valley Bank customers access to their deposits starting Monday, working to stem fallout from SVB's failure
S&P500 futures rose 1.4 percent after the announcement while Bitcoin jumped 6.7 percent to $21,998 after the announcement.
The boards of the Federal Deposit Insurance Corporation and the Federal Reserve, in consultation with President Joe Biden, approved the FDIC's resolution of SVB, according to a joint statement from US Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and FDIC Chairman Martin Gruenberg on Sunday evening.
"This step will ensure that the US 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." SVB equity and bondholders would be wiped out, said the official, who briefed reporters after the announcement.
The Federal Reserve also said on Sunday it would make additional funding available through a new Bank Term Funding Program, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.Signature Bank closure Earlier, Yellen had said she was working with banking regulators to respond after SVB became the largest bank to fail since the 2008 financial crisis.
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