Treasury Secretary Janet Yellen testifies during a hearing on Capitol Hill in Washington on March 10, 2023. Yellen said on Sunday that regulators were working throughout the weekend to deal with the fallout from the collapse of Silicon Valley Bank but tried to assure the public that the American banking system was “safe and well capitalized.” (Valerie Plesch/The New York Times)

 The U.S. government took emergency steps Sunday in an attempt to prevent more instability among banks after the historic failure of Silicon Valley Bank, and assured clients of the failed financial institution that they would be able to recover all of their money quickly.

The announcement came amid fears that the factors that caused the Santa Clara, California-based bank could spread, and only hours before trading began in Asia. Regulators had worked all weekend to try and come up with a buyer for the bank or broker another intervention, and as another bank, Signature Bank, was shuttered. The Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank’s customers and prevent more bank runs.

Ex // Top Stories