What's next for Silicon Valley Bank clients?
The bank will reopen Monday morning, March 13, under the supervision of the newly created Santa Clara National Deposit Insurance Bank. After that, insured depositors with up to $250 in their accounts will be able to withdraw their money. But there is a point - most deposits in SVB were not insured, so it is unclear whether depositors will ever receive their money.
One solution would be to use the FDIC's systemic risk exclusion tool to support uninsured deposits in SVB. The second option is if another bank buys part or all of SVB. If none of this happens, the FDIC will sell SVB's assets to generate cash that will be distributed to uninsured depositors.
Source: Telegram channel “US NEWS | AMERICA"
