“This should be enough to stop the depositor panic.”
Former President of the New York Federal Reserve William Dudley on a U.S. government plan to minimize the impact of the Silicon Valley Bank collapse.
mar 13, 2023
Why It Matters: In an extraordinary move, the U.S. Treasury, Federal Reserve and FDIC came up with a plan to assure customers of Silicon Valley Bank that they would receive their deposits, effectively shoring up a weak spot in the banking industry in an attempt to quell investor fears that could lead to further contagion. This move also applies to crypto-focused Signature Bank, which collapsed over the weekend.
For more background on what happened to SVB – CLICK HERE