US authorities took emergency measures on Sunday to shore up the banking system after Silicon Valley Bank (SVB) and Signature Bank collapsed. People and businesses who have money deposited with SVB would be able to access all their cash from Monday, the government said.
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Regulators also closed New York-based Signature Bank after mounting pressure. President Joe Biden will address the dramatic weekend in the financial sector later on Monday. In a statement, he promised to hold “those responsible for this mess fully accountable”.
SVB – which specialised in lending to technology companies – was shut down by regulators who seized its assets on Friday. It was the largest failure of a US bank since the financial crisis in 2008.
“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.”
Oreoluwa is an accountant and a brand writer with a flair for journalism.
