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U.S. Treasury says Silicon Valley Bank, Signature Bank 'not being bailed out'

Published 03/12/2023, 08:12 PM
Updated 03/12/2023, 08:16 PM
© Reuters. A worker arrives to the Signature Bank headquarters in New York City, U.S., March 12, 2023. REUTERS/Eduardo Munoz

WASHINGTON (Reuters) - New policies adopted on Sunday by U.S. banking regulators will "wipe out" equity and bondholders in Silicon Valley Bank and Signature Bank (NASDAQ:SBNY) of New York while protecting all customer deposits, a senior U.S. Treasury official said.

The official said the steps were taken to stabilize the financial system and protect depositors, and did not constitute a bailout of either firm. No losses of either bank will be borne by U.S. taxpayers, the official said.

Together with the Federal Reserve's decision to make funds available to eligible financial institutions and ensure they can meet the needs of all their depositors, the steps would "restore market confidence," the official said.

Latest comments

Not being bailed out is a lie. Did anyone read the deal? 100% bailout.
"regulators will "wipe out" equity and bondholders"
william either you did not read it, you read it but did not understand, or you can't read..
fed needs to step the eff back
Needed more details on money flow before prejudging.
Whats the new terminology then 'Hand outs"? This is getting farcical
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