Following the failure of Silicon Valley Bank, the US government took extraordinary measures on Sunday to avert a potential banking crisis. This ensured depositors at the failed financial institution that they would be able to access all of their funds as soon as possible.
The announcement came just hours before Asian trading began, amid concerns that the factors that led to the bank’s failure in Santa Clara, California, could spread. Regulators spent the entire weekend trying to find a buyer for the bank, making it the second-largest banking crisis. As of Sunday, it appeared that those efforts had fallen short.
On Sunday, regulators announced that New York-based Signature Bank had failed and was being seized, indicating how quickly the financial bleeding was occurring. Signature Bank, with more than $110 billion in assets, is the third-largest bank failure in U.S. history.
On Sunday, the Treasury Department, Federal Reserve, and FDIC announced that all Silicon Valley Bank clients would be protected and their funds would be available, as well as steps to protect the bank’s customers and avoid further bank runs.
