President Joe Biden was also consulted on the announcement. The Treasury official also said the decision to protect all deposits was made following a recommendation by the FDIC and the Federal Reserve, the nation's top banking regulators.
The official spoke on the condition of anonymity to speak about internal deliberations, under the conditions of the call. On a call with reporters on Sunday evening, a senior Treasury official defended the administration's decision as necessary to protect the stability of the banking system and emphasized that the move was aimed at protecting companies and workers who could be harmed by the bank's collapse - not the bank's shareholders or executives. 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." economy by strengthening public confidence in our banking system," a joint statement from the Treasury Department, the Fed and the Federal Deposit Insurance Corp. "Today we are taking decisive actions to protect the U.S. The decision by Treasury to backstop all of Silicon Valley Bank's deposits - not just those up to $250,000 that are automatically insured under federal law - will likely ignite a political firestorm over the decision to protect the assets of tech firms, venture capitalists and other high earners in California. At more than $110 billion in assets, Signature Bank is the third-largest bank failure in U.S. In a sign of how quickly the financial bleeding was occurring, regulators announced that New York-based Signature Bank had failed and was being seized on Sunday. Those efforts appeared to have failed as of Sunday. Regulators had worked all weekend to try and come up with a buyer for the bank, which was the second-largest bank failure in history. regulators had to intervene to prevent left Asian markets jittery as trading began Monday. The Federal Reserve and Treasury Department are also preparing a program to backstop deposits using the Fed's emergency lending authority.
The Federal Reserve is planning to ease the terms of banks' access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB's Silicon Valley Bank. government took steps Sunday to stop a potential banking crisis after the failure of Silicon Valley Bank, assuring depositors at the failed financial institution that they would be able to access all of their money quickly.
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