FED And FDIC Are Considering Establishing A Fund To Guarantee Deposits For Failing Banks
Key Points:
- After the failure of Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are discussing establishing a fund that would allow regulators to issue larger deposit guarantees to failing banks.
- According to speculations, the FDIC may endeavor to hastily liquidate a portion of Silicon Valley Bank’s assets this weekend, allowing Silicon Valley Bank depositors to take 30-50% of their monies.
Since Silicon Valley Bank failed, the FDIC and Federal Reserve are considering creating a fund to allow regulators to offer greater deposit guarantees to failing banks.
After the failure of Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are discussing establishing a fund that would allow regulators to issue larger deposit guarantees to failing banks. According to persons familiar with the subject, authorities discussed the new special tool with banks executives. They expect that developing such a tool will comfort savers and alleviate worry. SVB became the greatest bank failure in the United States in more than a decade on Friday. California regulators have taken control of the bank, which was recently valued at more than $40 billion.
Because Silicon Valley Bank had liquidity issues and was ordered by the United States Federal Deposit Insurance Corporation (FDIC) to shut and confiscate assets on March 10, a total of $ 3.3 billion became unavailable until Monday (March 13). This amount is comparable to 7.83% of the stablecoin’s total collateral. Recently, Circle reported that it issued a request to move money from Silicon Valley Bank to other banking partners on Thursday (March 9), before the FDIC interfered, but that it still had to wait for the FDIC’s guidance on how to handle the situation.
Rumors are currently circulating that the FDIC will seek to urgently liquidate a portion of Silicon Valley Bank’s assets this weekend, allowing Silicon Valley Bank depositors to withdraw 30-50% of their funds on Mondays and Tuesdays, with the remainder awaiting full liquidation and recurring payments in due course.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Chubbi
Coincu News
Author
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FED And FDIC Are Considering Establishing A Fund To Guarantee Deposits For Failing Banks
Key Points:
- After the failure of Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are discussing establishing a fund that would allow regulators to issue larger deposit guarantees to failing banks.
- According to speculations, the FDIC may endeavor to hastily liquidate a portion of Silicon Valley Bank’s assets this weekend, allowing Silicon Valley Bank depositors to take 30-50% of their monies.
Since Silicon Valley Bank failed, the FDIC and Federal Reserve are considering creating a fund to allow regulators to offer greater deposit guarantees to failing banks.
After the failure of Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are discussing establishing a fund that would allow regulators to issue larger deposit guarantees to failing banks. According to persons familiar with the subject, authorities discussed the new special tool with banks executives. They expect that developing such a tool will comfort savers and alleviate worry. SVB became the greatest bank failure in the United States in more than a decade on Friday. California regulators have taken control of the bank, which was recently valued at more than $40 billion.
Because Silicon Valley Bank had liquidity issues and was ordered by the United States Federal Deposit Insurance Corporation (FDIC) to shut and confiscate assets on March 10, a total of $ 3.3 billion became unavailable until Monday (March 13). This amount is comparable to 7.83% of the stablecoin’s total collateral. Recently, Circle reported that it issued a request to move money from Silicon Valley Bank to other banking partners on Thursday (March 9), before the FDIC interfered, but that it still had to wait for the FDIC’s guidance on how to handle the situation.
Rumors are currently circulating that the FDIC will seek to urgently liquidate a portion of Silicon Valley Bank’s assets this weekend, allowing Silicon Valley Bank depositors to withdraw 30-50% of their funds on Mondays and Tuesdays, with the remainder awaiting full liquidation and recurring payments in due course.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Chubbi
Coincu News
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