The US Treasury announced on Sunday that it would refund Silicon Valley bank deposits in excess of the $250,000 federal insurance limit.
“Depositors will have access to all their money from Monday, March 13,” it said in a statement. “No damages associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
The Treasury also said a similar guarantee would be provided for Signature Bank in New York.
Treasury said that SVB’s senior management would be removed.
A takeover was widely expected as the best solution as many tech firms and startups halted their operations in anticipation of what would happen next for the bank that holds most of their assets.
The question of whether accounts over $250,000 would be guaranteed for accounts covered by the Federal Deposit Insurance Corporation was important to many depositors.
The California Department of Financial Protection and Innovation shut down SVB on Friday to protect deposits.
First, the FDIC said it had created a separate entity to make all insured SVB deposits available to bank customers as of Monday.
Gretchen Morganson Contribution,