The government announced that starting on Monday, both individuals and businesses with money deposited with SVB would have access to all of their funds.
With increased pressure, regulators also closed the New York-based Signature Bank.
Later on Monday, President Joseph Biden will speak about the eventful financial sector weekend.
He pledged to bring “those responsible for this debacle completely accountable” in a statement.
Regulators shut down SVB, which specialized in lending to technology startups, on Friday after seizing its assets. Since the beginning of the financial crisis in 2008, it was the biggest failure of a US bank.
Depositors would be completely safeguarded, according to a statement from the US Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC). The taxpayer won’t incur any damages.
SVB was attempting to raise cash to cover a loss on the sale of assets that were negatively impacted by increasing interest rates.
“The US banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry,” the authorities’ joint statement said.
“Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”
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