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Who ends up paying for SVB, Signature and other bank failures?

Who ends up paying for SVB, Signature and other bank failures?

CBSN
Friday, March 17, 2023 3:24 PM GMT

The federal government's response to the failure of Silicon Valley and Signature banks has already involved hundreds of billions of dollars, which brings into question who will end up paying for the aid.

It could be months before the answers are fully known. 

The Biden administration said it will guarantee uninsured deposits at both banks, while the Federal Reserve announced a new lending program for all banks that need to borrow money to pay for withdrawals. On Thursday, the Fed said banks had borrowed about $300 billion in emergency funding in the past week, with nearly half that amount going to holding companies for the two failed banks to pay depositors. The Fed did not say how many other banks borrowed money and added that it expects the loans to be repaid.

Read full story on CBSN
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