March 12, 2023
Joint Assertion by Treasury, Federal Reserve, and FDIC
Division of the Treasury
Board of Governors of the Federal Reserve System
Federal Deposit Insurance coverage Company
For launch at 6:15 p.m. EDT
Washington, DC — The next assertion was launched by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:
Right now we’re taking decisive actions to guard the U.S. financial system by strengthening public confidence in our banking system. This step will be sure that the U.S. banking system continues to carry out its very important roles of defending deposits and offering entry to credit score to households and companies in a fashion that promotes sturdy and sustainable financial development.
After receiving a suggestion from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen permitted actions enabling the FDIC to finish its decision of Silicon Valley Financial institution, Santa Clara, California, in a fashion that totally protects all depositors. Depositors can have entry to all of their cash beginning Monday, March 13. No losses related to the decision of Silicon Valley Financial institution will probably be borne by the taxpayer.
We’re additionally asserting an analogous systemic danger exception for Signature Financial institution, New York, New York, which was closed in the present day by its state chartering authority. All depositors of this establishment will probably be made complete. As with the decision of Silicon Valley Financial institution, no losses will probably be borne by the taxpayer.
Shareholders and sure unsecured debtholders won’t be protected. Senior administration has additionally been eliminated. Any losses to the Deposit Insurance coverage Fund to help uninsured depositors will probably be recovered by a particular evaluation on banks, as required by legislation.
Lastly, the Federal Reserve Board on Sunday introduced it can make accessible further funding to eligible depository establishments to assist guarantee banks have the flexibility to satisfy the wants of all their depositors.
The U.S. banking system stays resilient and on a strong basis, largely because of reforms that had been made after the monetary disaster that ensured higher safeguards for the banking trade. These reforms mixed with in the present day’s actions exhibit our dedication to take the required steps to make sure that depositors’ financial savings stay protected.
March 12, 2023