U.S. government says all depositors at failed Silicon Valley Bank will have access to all their money on Monday
Separately, the Federal Reserve announced that it was creating a new lending facility for the nation’s banks, designed to buttress them against financial risks caused by Friday’s collapse of SVB.
Under the new program, the Fed said it would provide loans of up to one year to banks, savings associations, credit unions, and other eligible depository institutions in return for collateral such as U.S. Treasuries, agency debt and mortgage-backed securities. The plan would be among the potential policy responses if the government is unable to find a buyer for the failed bank. The FDIC began an auction process for SVB on Saturday and hoped to identify a winning bidder Sunday afternoon, with final bids expected by 2 p.m. Eastern time, according to two people familiar with the matter.
Before that happens, the systemic risk verdict must be endorsed by a two-thirds vote of the Fed’s Board of Governors and the FDIC board along with Treasury Secretary Janet Yellen. No final decision has been made, but the deliberations reflect concern over the collateral damage from SVB’s collapse and authorities’ struggle to respond amid limits on their powers implemented following the 2008 financial bailouts.“We’ve been hearing from those depositors and other concerned people this weekend.
The bank’s collapse would cost its shareholders and could trigger economic problems for companies that kept large uninsured sums on deposit, said Anil Kashyap, a professor at the University of Chicago’s Booth School of Business. But that did not mean the broader financial system would be imperiled as it was during the 2008 crisis.“This isn’t a systemic event. This is a midsize bank that was badly managed,” he said “It may be a little messy.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Federal officials pause plan to rename Georgia's Lake LanierFederal officials are pausing a proposal to rename Georgia’s Lake Lanier and Buford Dam, both names that come from onetime Confederate soldiers
Baca lebih lajut »
DPS warns Texans not to travel to Mexico during spring break after deadly kidnappingFederal officials also issued a warning advising Americans not to travel to Tamaulipas, where four Americans were kidnapped and two of them killed.
Baca lebih lajut »
Congress’ pandemic probe asks whether Biden officials cut corners to fast-track vaccine approvalsHouse investigators are probing whether the Biden administration pressured the Food and Drug Administration to fast-track approval for a leading COVID-19 jab required to implement and enforce vaccine mandates.
Baca lebih lajut »
Gratz Middle School to reopen on Monday following asbestos remediationA Philadelphia middle school that abruptly closed this week due to the discovery of asbestos will reopen on Monday, according to officials.
Baca lebih lajut »