“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk,” Biden said in the statement.
Yellen on Sunday instructed the Federal Deposit Insurance Corporation to guarantee SVB customers will have access to all of their money starting Monday – an attempt to ensure public confidence in America’s banking system, Yellen, Federal Reserve Chair Jerome Powell and FDIC Chairman Martin J. Gruenberg said in a joint statement.
CNN’s David Goldman, Andrew Millman, Aileen Graef, Allison Morrow, Matt Egan, Manu Raju, Aaron Pellish and Jack Forrest contributed to this report.Chinese companies and founders rush to calm investors after Silicon Valley Bank's collapseThe collapse of Silicon Valley Bank , which courted Chinese start-ups, has caused, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent.
Other companies that publicly assured investors included Zai Lab, Andon Health, Sirnaomics, Everest Medicines, Broncus Medical, Jacobio Pharmaceuticals, Brii Biosciences, CStone Pharmaceuticals, Genor Biopharma and CANbridge Pharmaceuticals. It said all insured depositors will have full access to their insured deposits by no later than Monday morning. It said it would pay uninsured depositors an “advance dividend within the next week.”The Fed has been aggressively raising interest rates since 2022 to combat rampant inflation. But that made borrowing for businesses and individuals more expensive. High rates significantly constrained tech companies, which undercut the value of tech stocks and made it difficult to raise funds.
There’s also less anxiety about the stability of the banking sector due to the significant regulatory reforms put in place after the crisis in 2008. In an extraordinary action to restore confidence in the banking system, the Biden administration said Sunday all deposits at SVB would be guaranteed. The government also shut downBy guaranteeing deposits, the US government is trying to avoid two potentially risky scenarios, both of which could have dire consequences: Other banks with similar profiles to SVB and Signature could be next to fail if customers lose faith that they will have ample cash to fund their deposits.
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Biden: “The banking system is safe” Signature bank collapsed today. Third largest bank collapse in history. DEVELOPING: Trading Halted at 30 Banks as Market Opens - NYSE Halts Trading at Charles Schwab