Following the unprecedented collapse of Silicon Valley Bank, the U.S. government took exceptional measures on Sunday to prevent a possible banking crisis.
All depositors at the failed institution were guaranteed swift access to their funds, while another significant bank was simultaneously closed down, the Associated Press reported.
The declaration was made amidst concerns that the reasons for the collapse of the Santa Clara, California-based bank could have far-reaching consequences.
Regulators had been laboring throughout the weekend to locate a buyer for the institution, which was the second-largest bank failure on record. However, by Sunday, it seemed that these efforts had proven fruitless.
A testament to the rapidity of the financial decline, regulators disclosed on Sunday that Signature Bank, located in New York, had likewise collapsed and was being taken over.
With assets exceeding $110 billion, Signature Bank is now the third-largest bank failure ever recorded in the United States, as reported by the AP.
To bolster faith in the banking sector, the Treasury Department, Federal Reserve, and FDIC revealed on Sunday that all patrons of Silicon Valley Bank would be secured and able to retrieve their funds.
Additionally, they unveiled measures intended to safeguard the bank’s clients and forestall any further bank runs.
Written by staff