The Treasury Department on Sunday ordered the Federal Deposit Insurance Corporation (FDIC) to guarantee Silicon Valley Bank’s funds, which it will be able to access starting Monday.
The goal is to »ensure public confidence in the U.S. banking system,» said U.S. Treasury Secretary Janet Yellen in a joint statement also signed by FDIC Chairman Martin J. Gruenberg and Federal Reserve Chairman Jerome Powell.
Silicon Valley Bank (SVB), a financial institution with an important client portfolio among technology startups, was finally intervened by the FDIC last Friday due to doubts about its liquidity and solvency.
Federal authorities have been working over the weekend on possible ways to guarantee customer funds, mainly pushing for another entity to acquire the bank. This Sunday the auction was opened to bid for the entity, according to CNN, but finally the solution has not come from the private sector.
SVB had on December 31, 2022 »approximately» $209 billion (€196.192 billion) in assets and »about» $175.4 billion (€164.651 billion) in deposits, according to the FDIC.
Source: (EUROPA PRESS)
