US authorities protect depositors after Silicon Valley Bank’s failure

US authorities announced on 12 March 2023 that Silicon Valley Bank depositors would have access to all their money from the following day. A similar protection was announced for Signature Bank. The Treasury, Federal Reserve and FDIC presented the action as a way to support confidence in the banking system.

Depositors protected, investors exposed

Shareholders and certain unsecured creditors were excluded from protection, and senior management had been removed. Authorities said losses to the deposit insurance fund from protecting uninsured deposits would be recovered through a special assessment on banks. The intervention sought to preserve access to money and confidence in the system while leaving investors exposed to the consequences of the failures.