Regulators Shut Down Second Bank In Race To Contain Fallout From Silicon Valley Bank Collapse | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ryan Saavedra.

    Federal regulators announced over the weekend that they will fully back all depositors of Silicon Valley Bank, guaranteeing that they are paid back in full after the bank collapsed last week.

    The announcement late Sunday afternoon came from Treasury Secretary Janet Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg.

    "Depositors will have access to all of their money starting Monday, March 13," the statement said. "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."

    The federal agencies also revealed that a second bank was closed in New York on Sunday by state officials.

    "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority," the statement said. "All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer."

    "Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed," the statement continued. "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

    SVB announced a $1.75 billion share sale on Wednesday after the company suffered heavy losses from the liquidation of a $21 billion bond portfolio, raising concerns among venture capital firms and startups with ties to the company about the safety of their assets. SVB, the 16th largest bank in the United States and the largest in Silicon Valley, lends to nearly half of publicly traded venture-backed technology and healthcare companies.

    The Federal Deposit Insurance Corporation said on Friday that SVB was closed by the California Department of Financial Protection and Innovation.

poll#176

Considering the renewed and unequalled dishonesty in elected politicians, at all levels of governing, and their associative nefarious bureaucrats doing their corrupt bidding: What is your opinion of YOUR government, and what do you intend to do about it?

  Today's overall government is just fine, and I will continue to vote for politicians that make promises to suit my individual needs.

  Today's overall government is poor, but I will continue to endeavor to learn what is true from the the most honest of media, and pick those representatives that best represent what is good and decent.

  I spend quite a bit of time on Eastern NC NOW; so ... I am having a far easier time separating the proverbial "wheat from the chaff" in finding honorable citizens to support.

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