Here's what could happen next for Silicon Valley Bank customers
Publishing timestamp: 2023-03-12 12:29:01
Summary
Silicon Valley Bank (SVB) will reopen on Monday under the control of the newly created Deposit Insurance National Bank of Santa Clara, but the majority of deposits at SVB were not insured, and it is unclear when those customers will be able to access their money or whether they will get all of it back. The article explores potential options for resolving the situation, including using FDIC's systemic risk exception tool to backstop uninsured deposits, creating a special investment vehicle to backstop uninsured deposits at other banks, or finding a buyer for SVB. If none of these options work, FDIC will be selling off SVB's assets to repay uninsured depositors. The failure of government regulators to announce a new plan for restoring SVB's deposits could lead to cascading issues in other small- and mid-sized banks as well as financial markets.
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Keywords: jpmorgan chase & co, business news, markets, banks, fintech, breaking news: markets, technology, federal reserve system, janet yellen,
Source: https://www.cnbc.com/2023/03/12/heres-what-could-happen-next-for-silicon-valley-bank-customers.html