The following statement was released by Secretary of the Treasury
Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and
FDIC Chairman Martin J. Gruenberg:
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.
After receiving a recommendation from the boards of the FDIC and
the Federal Reserve, and consulting with the President, Secretary
Yellen approved actions enabling the FDIC to complete its
resolution of Silicon Valley Bank, Santa Clara, California, in a
manner that fully protects all depositors. Depositors will have
access to all of their money starting Monday, March 13. No losses
associated with the resolution of Silicon Valley Bank will be
borne by the taxpayer.
Taxpayers aren’t on the hook because SVB has assets greater than its deposits — they simply don’t have liquid assets to cover them. Sanity prevails. They say there are no atheists in a foxhole, but there are more of them than there are libertarians in a bank run. Thank jeebus we have a sane president.