Federal Reserve rolls out emergency measures to prevent banking crisis

Regulators said depositors at Silicon Valley Bank will have access to all of their money on Monday.


Jeff Chiu/Associated Press

Federal regulators took emergency measures on Sunday night to counter potential spillovers from Friday’s rapid collapse of Silicon Valley Bank, including measures to stop all depositors.

Regulators announced the action in a joint statement from Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and Federal Deposit Insurance Corp. president. Martin Gruenberg. The group said savers at SVB will have access to all their money on Monday.

“After receiving a recommendation from the boards of directors of the FDIC and the Federal Reserve, and after consulting with the President, Secretary Yellen approved actions that enabled the FDIC to pass its resolution of Silicon Valley Bank, Santa Clara, California, complete in a way that benefits all savers,’ they said. “Depositors will have access to all of their money starting Monday, March 13. No losses related to the Silicon Valley Bank resolution will be borne by taxpayers.”

The Fed said it would make additional funding available to banks to ensure they are “able to meet the needs of all depositors” through a new “Bank Term Funding Program,” which will offer loans of up to one year to banks holding U.S. Treasury bills, mortgage-backed securities and other collateral.

The regulators also said Signature Bank was closed on Sunday. New York bank depositors will be made healthy, they said.

Updates will follow as the news develops.

Write to Nick Timiraos at Nick.Timiraos@wsj.com

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