By Jeff Cox -
CNBC
The federal government announced a plan this Sunday night so that Silicon Valley Bank depositors
can access all their funds this Monday
, a last-minute measure that seeks to appease the financial panic in the United States after the spectacular collapse of the bank, one of the largest in the country.
In an announcement that has been eagerly awaited since the banking collapse on Friday, the Federal Reserve said it will create a new financing program to support institutions affected by the bankruptcy of the bank, which mainly offered services to technology
startups
.
Silicon Valley Bank offices in Wellesley, Massachusetts, on March 11, 2023. Peter Morgan / AP
The regulators also said that both Silicon Valley Bank depositors and Signature Bank, another bank that closed in New York in the wake of the former's collapse, will have full access to their deposits.
In a joint statement, the central bank clarified that
taxpayers will not be affected
by these bailout measures.
"Today
we have taken decisive actions to protect the US economy by strengthening public confidence
in our banking system," Federal Reserve Chairman Jerome Powell said in the statement;
Treasury Secretary Janet Yellen and Federal Deposit Insurance Corporation President Martin Gruenberg.
[Silicon Valley Bank bankruptcy: does it mean that the financial crisis of 2008 can be repeated?]
The Federal Reserve will offer loans of up to one year to banks, savings associations and other lending institutions.
In return, they will have to commit to offering high-quality collateral such as Treasuries, agency debt, and mortgage-backed securities.
