depositor of Silicon Valley Bank SIVB will have Access to all of their money starting Mondayaccording to regulators.
The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC) and the Treasury Department in one joint opinion said the FDIC will complete its resolution of Silicon Valley Bank in a manner that fully protects all depositors.
The resolution was made possible by a systemic risk exemption following a recommendation from the boards of the FDIC and the Federal Reserve.
Losses related to the dissolution will not be borne by the taxpayer, the statement said.
Similar protections were extended to depositors of signature bank SBNYwhich has been closed by its state chartering authority.
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Shareholders and unsecured creditors are not protected and senior management has been removed.
Any losses incurred by the Deposit Insurance Fund to support uninsured depositors will be reimbursed through a special deposit with the banks in accordance with the law.
In addition, the Federal Reserve Board has announced that it will provide additional funding to eligible depository institutions to ensure banks are able to meet the needs of all of their depositors.
The joint announcement resulted in a major price surge for major cryptocurrencies Bitcoin BTC/USDAnd ether ETH/USD Trade up about 8%.
Other major cryptocurrencies like binance BNB/USD And USD coin USDC/USD jumped about 4% after the announcement.
Photo: IMF on flickr
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