U.S. Regulators Take Action to Prevent Banking Crisis Following SVB Crash

Following the collapse of Silicon Valley Bank on Friday, U.S. regulators have taken control of Signature Bank, which provides banking services to cryptocurrency companies. Emergency measures have been introduced to support uninsured depositors at both banks and provide additional funding to the banking system. SVB and Signature Bank have been identified as a risk to the financial system, enabling regulators to backstop uninsured deposits.

A joint statement from Treasury Secretary Janet Yellen, Fed Chair Jerome Powell, and Federal Deposit Insurance Corp. Chair Martin Gruenberg assures depositors at both banks that they can access all their funds on Monday. The Federal Reserve is closely monitoring the financial system and is prepared to take additional steps to support households and businesses as required.