Please try another search
© Reuters. FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. REUTERS/Jason Reed/File Photo
By David Lawder
WASHINGTON (Reuters) -The Federal Deposit Insurance Corp deposited $40 billion back into the U.S. Treasury General Account on Tuesday, reversing a $40 billion withdrawal on Friday as the regulator took control of the failed Silicon Valley Bank, Treasury financial data released on Wednesday showed.
A Treasury spokesperson referred questions about the fund transfers to the FDIC, which declined comment.
On Tuesday, before the restoration of the funds was disclosed in the latest Daily Treasury Statement, the Treasury said that the $40 billion withdrawal would not affect estimates for when it would no longer be able to pay all U.S. government bills without a debt ceiling increase.
After the initial $40 billion withdrawal on Friday as SVB Financial was closed and put under FDIC receivership, the Treasury, FDIC and Federal Reserve on Sunday announced guarantees for both insured and uninsured deposits at the institution to shore up confidence in the banking system.
The same protections were offered to New York's Signature Bank (NASDAQ:SBNY), which failed on Sunday, and the Federal Reserve opened a new facility to give the banks access to emergency funds.
The restoration of the funds to Treasury's cash balance held at the Fed came a day after SVB and Signature reopened on Monday with access to the Fed facilities, which allow them to borrow from the Fed's discount window by pledge bonds at par value as collateral, rather than at their diminished market value.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.