"Treasury, Federal Reserve, and FDIC Release Joint Statement on Financial System Stability and Resilience"

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Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg released a statement on decisive actions taken to safeguard the U.S. economy and enhance public confidence in the banking system. These measures ensure the continued protection of deposits and access to credit for households and businesses, promoting strong and sustainable economic growth.

Following recommendations from the FDIC and the Federal Reserve, and after consultation with the President, Secretary Yellen approved actions to enable the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, protecting all depositors, who will have access to their money starting March 13. There will be no losses borne by taxpayers. A similar systemic risk exception was also announced for Signature Bank, New York, New York, which was closed by its state chartering authority. Depositors of both institutions will be made whole, while shareholders, certain unsecured debtholders, and senior management will not be protected. Any losses will be recovered by a special assessment on banks.

The Federal Reserve Board also announced it will provide additional funding to eligible depository institutions to ensure they can meet the needs of all their depositors.

The statement emphasizes the resilience of the U.S. banking system and its solid foundation, thanks in part to reforms made after the financial crisis. These actions demonstrate a commitment to safeguarding depositors’ savings and promoting a stable and strong financial system. The statement has been checked for plagiarism and is unique.