Treasury Secretary Janet Yellen approved the actions of The Federal Deposit Insurance Corporation (FDIC) to protect all depositors
The depositors will have access to all their money starting Monday, March 13
This has come as a sigh of relief for several startups whose money was stuck with the bank
The US government has finally stepped in to resolve the Silicon Valley Bank fiasco. Treasury Secretary Janet Yellen, on Sunday, March 12, approved the actions of The Federal Deposit Insurance Corporation (FDIC) to protect all depositors. This has come as a sigh of relief for several startups whose money was stuck with the bank, impacting their day-to-day operations and delay in salaries for employees.“The depositors will have access to all their money starting Monday, March 13. No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer,” said a joint statement issued by the Department of the Treasury, Federal Reserve, and FDIC.As LogiNext cofounder Dhruvil Sanghvi mentioned in his LinkedIn posts, “For me, the real winners are founders of the depositing companies who stayed resilient and worked their way out of this crisis caused by short and quick information/panic spread. Lesson learned for others: we are living in a fragile world. Whenever something goes wrong, do not spread fear but get to work and focus on solving it, in whatever way you can.”
The official statement added that as with the resolution of Silicon Valley Bank, the taxpayer would bear no losses. However, shareholders and certain unsecured debtholders will not be protected.