iFollowing the Mintz alert concerning the failure and receivership of Silicon Valley Bank (SVB) published earlier in the day on March 12, 2023, the FDIC, together with the Federal Reserve and the Department of the Treasury, subsequently issued a joint press release announcing that the Federal Reserve has invoked the systemic risk exception, thereby protecting all depositors. According to the press release: “Depositors will have access to all of their money starting Monday, March 13.”
The systemic risk exception does not protect unsecured creditors of Silicon Valley Bank or the bank’s shareholders.
The press release also notes that depositors of Signature Bank, which was closed by New York state regulators on March 12, will be similarly protected.
The full press release is available at:
https://home.treasury.gov/news/press-releases/jy1337.
