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Depositors of Silicon Valley Bank SIVB will have access to all their money starting Monday, according to regulators.
The Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), and Treasury Department in a joint statement said that the FDIC will complete its resolution of Silicon Valley Bank in a manner that fully protects all depositors.
The resolution was made possible through a systemic risk exception, following a recommendation from the boards of the FDIC and the Federal Reserve.
No losses associated with the resolution will be borne by the taxpayer, the statement added.
Similar protection has been extended to depositors of Signature Bank SBNY, which was closed by its state chartering authority.
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Shareholders and unsecured debtholders will not be protected, and senior management has been removed.
Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
Additionally, the Federal Reserve Board has announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
The joint announcement led to a major spurt in the prices of major cryptocurrencies, with Bitcoin BTC/USD, and Ethereum ETH/USD trading up by about 8%.
Other major cryptocurrencies like Binance BNB/USD and USD Coin USDC/USD shot up about 4% following the announcement.
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Photo: International Monetary Fund on flickr
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Image and article originally from www.benzinga.com. Read the original article here.