KEY POINTS
  • Regulators approved plans Sunday to backstop both depositors and financial institutions associated with Silicon Valley Bank.
  • Officials will unwind both SVB and Signature Bank, ensuring that depositors will have full access to their funds on Monday.
  • The Federal Reserve stepped in with a separate facility that will provide loans up to one year for institutions affected by the bank failures.
  • "Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system," leading regulators said in a joint statement.

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A man walks by the headquarters of Silicon Valley Bank on March 10, 2023 in Santa Clara, California.

Banking regulators devised a plan Sunday to backstop depositors with money at Silicon Valley Bank, a critical step in stemming a feared systemic panic brought on by the collapse of the tech-focused institution.

Depositors at both failed SVB and Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears, will have full access to their deposits as part of multiple moves that officials approved over the weekend. Signature had been a popular funding source for cryptocurrency companies.

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