SVB and Signature Bank Depositors Will Get All Their Money Back. The US Government Will Pay For It

Silicon Valley Bank the 16th largest bank in the United States has encountered with bank run on March 10, 2023. ABC News reported that the Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation announced on March 12, 2023 that they will fund all Silicon Valley Bank deposits and return all the money back to depositors in full. The action has been approved by President Joe Biden and Secretary of Treasury Janet Yellen.

President Joe Biden issued a statement on March 12, 2023 that he will issue a policy to protect depositors of both Silicon Valley Bank and Signature Bank. President Joe Biden wants to protect American working class and small businesses as well as prevent another domino effect from happening to keep the US financial system safe.

The FDIC's Deposit Insurance Fund (DIF) will pay for depositors of those two banks. The DIF has more than $100 billion in Treasury securities that can be used to fund depositors. U.S. Department of the Treasury said only depositors will be protected. Shareholders of those two banks will not receive financial aid right now.