Fed, Treasury, and FDIC Announce Actions to Backstop Banks After Silicon Valley Meltdown

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The U.S. government on Sunday sought to affirm confidence in the U.S. banking system by announcing protection for all depositors in Silicon Valley Bank.

Treasury Secretary Janet Yellen approved measures to resolve the failure of Silicon Valley Bank “in a manner that fully protects all depositors,” the Treasury said Sunday in a joint statement with the Fed and FDIC.

This means that deposits beyond the $250,000 limit on FDIC insurance will be available on Monday. The Treasury sAaid the measures will not come at a cost to taxpayers.

In a joint statement by the U.S. Treasury, the Federal Reserve, and the Federal Deposit Insurance Corp, the government said:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.