The US Treasury announced Sunday that it would support Silicon Valley Bank’s deposits beyond the federal insured limit of $250,000.
«Depositors will have access to all their money starting Monday, March 13,» it said in a statement. «No loss associated with the Silicon Valley Bank resolution will be borne by the taxpayer.»
The Treasury also said a similar guarantee would be instituted for Signature Bank in New York.
SVB’s top management would be removed, the Treasury said.
An acquisition was widely expected to be the best solution, as many tech companies and startups all but froze operations in anticipation of what would come next for a bank that owned much of their assets.
The question of whether accounts with more than $250,000, the cap for accounts covered by the Federal Deposit Insurance Corporation, would be guaranteed, was a crucial one for many depositors.
SVB was closed Friday by the California Department of Financial Innovation and Protection to protect deposits.
Earlier, the FDIC said it had formed a separate entity to make all SVB insured deposits available to bank customers on Monday.
gretchen morgenson contributed.