The shocking collapse of the Silicon Valley Bank has already resulted in multiple butterfly effects over the last week, as stablecoins have been de-pegged. This has led to some American regulators believing that it was time to prepare multiple emergency plans- something that has raised fears among the small businesses, venture capitalists, and several other depositors who have had their funds stuck at the California tech bank.
President Joe Biden, on 13th March, tweeted that he was quite firmly committed to bringing those responsible for the collapse of the SVB to justice, and he would have a lot more to say in a later address.
President Joe Biden Has Vowed To Bring Those Responsible For Silicon Valley Bank’s Collapse To Justice
The federal regulators in the United States, which include Janet Yellen, the US Treasury Secretary, Jerome Powell, the Federal Reserve Board Chair, and Martin Gruenberg, the FDIC Chairman on the 12th of March to announce that they were taking decisive actions that would protect the depositors at both the Signature Bank and the Silicon Valley Bank. According to a joint statement from the regulators, depositors will have complete access to their money starting on Monday, the 13th of March. No losses in association with the collapse of the SVB will be upheld as a burden for the taxpayer.
On the 12th of March, the Federal Reserve Board also announced a $25 billion Bank Term Funding Program that would offer loans of around one year to banks and other eligible depository institutions. These loans will be aimed at preventing any liquidity issue- not unlike the ones faced by Silicon Valley Bank. This was just one of the steps taken by the regulators in the United Kingdom and the United States, as they started taking action to deal with the collapse of the SVB. Janet Yellen, the US Treasury Secretary, also stated that the Treasury was quite focused on the needs of the depositors, and would not come about and bail the bank out.