Authorities Step In To Protect SVB Deposits; NY Closes Additional Bank

The saga surrounding Silicon Valley Bank continued over the weekend as U.S. authorities stepped in to contain the fallout from the bank’s closure.

As we previously reported, California regulators shut down SVB on Friday following a chaotic 48 hours as the bank was unable to raise capital. Regulators closed down the tech lender and put it in control of the US Federal Deposit Insurance Corporation.

Officials announced that those with money at the bank would be paid back in full and be able to start accessing their money this morning. The New York Times also reported that another lender, Signature Bank, had been shuttered by New York regulators and that its depositors would also be made whole.

The Fed also announced that it would set up an emergency lending program to funnel funding to eligible banks and help ensure that they are able to “meet the needs of all their depositors.”

Additionally, the Bank of England announced that HSBC will buy the British subsidiary of Silicon Valley Bank: “This action has been taken to stabilise [Silicon Valley Bank UK Limited], ensuring the continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system. The Bank and [HM Treasury] can confirm that all depositors’ money with SVBUK is safe and secure as a result of this transaction. SVBUK’s business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes.”