SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis



By guest author Jeff Sparshott from the Wall Street Journal.

U.S. regulators took control of a second bank Sunday and announced emergency measures to ease fears depositors might pull their money from smaller lenders after the swift collapse late last week of Silicon Valley Bank. The measures, which include guaranteeing all deposits of SVB, were designed to shore up wavering confidence in the banking system. They were jointly announced Sunday night by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., Nick Timiraos, Andrew Ackerman and Andrew Duehren report.

Regulators also announced they had taken control of Signature Bank, one of the main banks for cryptocurrency companies, on Sunday. The Fed and Treasury separately said they would use emergency-lending authorities to make more funds available to meet demands for bank withdrawals, an additional effort to prevent runs on other banks.