The Biden government declared that customers of Silicon Valley Bank will possess unhampered admittance to their deposits, an unprecedented action taken by federal authorities to protect billions of dollars in uninsured money in the face of concerns that the bank's collapse could spark even more alarm.
On Sunday, government regulators declared that they were adopting emergency measures to prevent contagion at other small and regional banks in response to Silicon Valley Bank's collapse.
On Monday, Janet Yellen (Treasury Secretary), Jerome Powell (Federal Reserve Chair) and Martin Gruenberg (FDIC Chair) jointly announced that customers of Silicon Valley Bank will be able to withdraw all their funds.
Prior to the declaration, depositors of Silicon Valley Bank were filled with trepidation, considering federal insurance is limited to $250,000, and the majority of the bank's deposits exceeded that amount.
Despite criticism of the federal government's decision to guarantee uninsured deposits as a form of bailout, officials Sunday declared that "no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
On Sunday, the Federal Reserve declared they are initiating fresh steps to provide banks with funding so that they may fend off any risks resulting from the Silicon Valley Bank crash on Friday.
"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system," Officials declared on Sunday.
With federal authorities striving to curb the economic repercussions of the bank's collapse, prominent venture capitalists voiced their apprehensions on Twitter throughout the weekend, asserting that the absence of deposit support could bring about disaster to tech startups and the venture capital sector.
Approximately 5,000 heads of new businesses implored government authorities for assistance to protect deposits.
"We are not asking for a bailout for the bank equity holders or its management; we are asking you to save innovation in the American economy," the founders and CEOs said in their request. "The collapse of Silicon Valley Bank carries the potential of a widespread disruption."