The U.S. Treasury on Sunday announced it would back Silicon Valley Bank deposits beyond the federally insured ceiling of $250,000.
“Depositors will have access to all of their money starting Monday, March 13,” it said in a statement. “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
The Treasury also said a similar guarantee for Signature Bank in New York would be instituted.
Senior management of SVB would be removed, the Treasury said.
A takeover was widely hoped for as the best solution as many tech firms and startups all but froze their operations in anticipation of what would come next for a bank that held much of their assets.
The question of whether accounts with more than $250,000, the ceiling for Federal Deposit Insurance Corporation covered accounts, would be guaranteed, was crucial for many depositors.
SVB was shut down Friday by the California Department of Financial Protection and Innovation to protect deposits.
Previously, the FDIC said it had formed a separate entity to make available by Monday to bank customers all insured SVB deposits.
Gretchen Morgenson contributed.
Source: | This article originally belongs to Nbcnews.com
