The United States' Treasury Department and the Federal Deposit Insurance Corporation (FDIC) have set a priority to find a buyer for Silicon Valley Bank (SVB) that went bankrupt, US broadcaster NBC News reported referring to unnamed sources familiar with the matter
WASHINGTON (Pakistan Point News / Sputnik - 13th March, 2023) The United States' Treasury Department and the Federal Deposit Insurance Corporation (FDIC) have set a priority to find a buyer for Silicon Valley Bank (SVB) that went bankrupt, US broadcaster NBC News reported referring to unnamed sources familiar with the matter.
On Sunday, the Treasury and the FDIC said during a briefing with California lawmakers that their top priority was to organize a sale after the collapse of SVB, the media outlet reported.
The Treasury is also working to find a solution in order to provide assistance for uninsured accounts over the $250,000 threshold, the media reported, adding that the federal government guaranteed only assets up to $250,000.
US Treasury Secretary Janet Yellen said that the main aim of the US government was to prevent a chain reaction after the collapse of the bank, but there would not be a bailout, according to the media.
US online media Axios warned earlier that the administration of President Joe Biden would face a banking crisis in case there would not be a plan of action to help the clients of SVB worked out by Monday.
On Friday, California regulators shut down SVB, which became the largest US bank to collapse after the latest financial crisis. The FDIC transferred all the insured deposits from SVB to a separate institution - Deposit Insurance National Bank of Santa Clara. The collapse of SVB is connected with the increase in interest rates by the Federal Reserve System, which caused impairment of assets on the balance sheets of many financial institutions. According to the data of the FDIC, US banks lost a total of $620 billion in 2022.
