Silicon Valley Bank depositors will have access to their money starting Monday: Treasury Secretary

‘No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer,’ says the Dept.

In a step aimed at protecting the U.S. economy by strengthening public confidence in the country’s banking system, the Biden administration announced that depositors of the Silicon Valley Bank will have access to their money from Monday.

After receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, and consulting with the president, Treasury Secretary Janet Yellen on Sunday approved actions enabling the FDIC to complete its resolution of the Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors, an official statement said.

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“The depositors will have access to all their money starting Monday, that is, March 13. No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer,” said a joint statement issued by the Department of the Treasury, Federal Reserve, and FDIC.

“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. All depositors of this institution will be made whole,” it said.

According to the interagency federal statement, shareholders and certain unsecured debt holders, however, will not be protected.

“The senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law,” it said.