U.S. regulators to return 100% of deposits to all Silicon Valley customers after bank failure

U.S. regulators to return 100% of deposits to all Silicon Valley customers after bank failure

Customers with deposits at Silicon Valley Bank Will have access to all their money starting this Monday. despite the bank’s failure this Friday. This has been assured in a joint statement by the US Treasury Department, the Federal Reserve (FED) and the Federal Deposit Insurance Corporation (FDIC).

“We are taking decisive action to protect the U.S. economy. by strengthening public confidence in our banking system,” the regulators state in that release, in which they also emphasize that insuring those deposits will have no cost to taxpayers.

“This step will ensure that the U.S. banking system will continue to perform its vital deposit protection functions and access to credit for households and businesses in a manner that promotes sound and sustainable economic growth,” he adds.

Image of a Silicon Valley Bank office in New York.

U.S. banking regulators have assured that they will make additional funds available to “eligible depository institutions to help ensure that banks have the capacity to meet the needs of their customers. of all their depositors.”

They have also announced the closure of Signature Bankbased in New York, for whose customers the same conditions will apply.

“The U.S. banking system remains resilient and on solid footing, in large part because of. to the reforms that were made after the financial crisis.which ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe,” the regulators maintain.

HSBC buys UK subsidiary of SVB.

HSBC bank has bought the UK subsidiary of Silicon Valley Bank (SVB) following its collapse last week, through a private rescue provided by the UK government. and the Bank of England, the Executive announced Monday.

HSBC Holdings announced on Monday that its UK subsidiary, HSBC UK Bank, will acquire Silicon Valley Bank UK Limited (SVB UK). for £1 (1.13 euros).

This “private sale” takes place without British “taxpayers” having to bear this bailout.said the British finance minister, Jeremy Hunt.

“This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC. Deposits will be protected, with no taxpayer support,” Hunt said in a message posted on his Twitter account. “I said we would look after our tech sector and… we have worked with urgency to fulfill that promise,” he added.

In a statement sent to the Hong Kong Stock Exchange, where HSBC, Europe’s largest bank and primarily active in the Asian market, is listed, estimates at around £1.4 billion (€1,581 million) the tangible equity of SVB’s UK subsidiary.

Kayleigh Williams