Reuters: The US administration will announce steps to protect SVB customers later on Sunday

The U.S. administration will announce steps to protect Silicon Valley Bank customer deposits on Sunday, Reuters reported, citing insider sources. House Speaker Kevin McCarthy also suggested that such an announcement would be made before markets opened on Monday.

The US government is expected to announce “material” decisions to support deposits from customers of the bank that went bankrupt on Friday and to avoid the negative effects spreading to the wider banking sector, the agency said.

On Sunday, McCarthy also suggested that in an interview with Fox News that the administration of President Joe Biden has the right tools to deal with the crisis, is aware of the seriousness of the situation and that it is trying to take concrete actions before opening markets.

Earlier, US Finance Minister Janet Yellen said the administration would not come to the aid of Silicon Valley Bank owners and investors, as it did during the 2008 financial crisis, but would focus on ensuring customers with SVB deposits did not lose their money. .

Bank deposits are insured by the state up to PLN 250,000. dollars, but administration representatives have announced that they will also try to protect non-guaranteed accounts. Among the options being considered is a takeover of SVB by another bank.

SVB came under state scrutiny on Friday after it was unable to pay customers who were withdrawing their funds en me. The collapse of the 16th largest bank in the US is the largest such case since 2008 and has raised concerns about wider negative effects on other banks and Silicon Valley companies for which it played a key role.

From Washington Oskar Górzyński (PAP)

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