Regulators respond to SVB collapse and close Signature Bank

Janet Yellen: "We are concerned about depositors and are focused on trying to meet their needs."

Photo by Steve Snodgrass on Flickr / CC BY 2.0

On Sunday, U.S. Treasury Secretary Janet Yellen said she was working closely with banking regulators to respond to the collapse of Silicon Valley Bank and protect depositors. However, she revealed that a major bailout was not being considered.

“Americans can have confidence in the safety and soundness of our bank system,” Yellen said.

A joint statement released by the Department of the Treasury, Federal Reserve, and FDIC on Sunday highlighted that “depositors will have access to all of their money starting Monday, March 13.”

Along with Silicon Valley Bank, state regulators closed New York-based Signature Bank on Sunday.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the joint statement reads.

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France 24
Yellen rules out SVB bailout but US said to weigh safeguarding deposits
Yellen: working to address SVB collapse, but not looking at bailout