What actions did the US government take on Sunday with respect
to Silicon Valley Bank (SVB) and Signature Bank?
On Sunday, March 12, the FDIC, the Federal Reserve, and the US
Treasury Department announced that the US government had invoked
the systemic risk exception to permit the FDIC "to complete
its resolution of Silicon Valley Bank...in a manner that fully
protects all depositors."
The systemic risk exception permits the FDIC to take actions to
avoid or mitigate serious adverse effects on economic conditions or
financial stability.
Also on Sunday, March 12, Signature Bank was closed.
All the deposits and substantially all the assets of SVB and
Signature Bank were transferred to two newly-created bridge banks:
Silicon Valley Bank, N.A. and Signature Bridge Bank, N.A.
