LIVE: Biden discusses banking actions; US, UK try to stem fallout from Silicon Valley Bank collapse.
NEW YORK — Governments in the U.S. and Britain are taking extraordinary steps to prevent a potential banking crisis after theU.S. regulators worked through the weekend to find a buyer for the bank, which had more than $200 billion in assets and catered to tech startups, venture capital firms and well-paid technology workers.
In an effort to shore up confidence in the banking system, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said Sunday that all Silicon Valley Bank clients would be protected and able to access their money. While the bank is small, with less than 0.2% of U.K. bank deposits according to central bank statistics, it had a large role in financing technology and biotech startups that the British government is counting on to fuel economic growth.
Silicon Valley Bank began its slide into insolvency when it was forced to dump some of its Treasuries at at a loss to fund its customers’ withdrawals. Under the Fed’s new program, banks can post those securities as collateral and borrow from the emergency facility.
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