AURN News with Ebony McMorris

U.S. Treasury Announces Full Payment of Silicon Valley Bank Deposits

Ebony McMorris
March 13, 2023

Silicon Valley Bank shut down on Friday — People look at signs posted outside of an entrance to Silicon Valley Bank in Santa Clara, Calif., Friday, March 10, 2023. From winemakers in California to startups across the Atlantic Ocean, companies are scrambling to figure out how to manage their finances after their bank, Silicon Valley Bank, suddenly shut down on Friday. The meltdown means distress not only for businesses but also for all their workers whose paychecks may get tied up in the chaos. (AP Photo/Jeff Chiu)

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President Biden says he’s working to calm fears about growing chaos in the banking industry.

“Americans can rest assured that our banking system is safe. Your deposits are safe. Let me also assure you, we will not stop at this. We’ll do whatever is needed,” Biden said.

It started Friday with the sudden collapse of Silicon Valley Bank, making it the biggest failure since the 2008 financial crisis. The Treasury Department is moving to ensure all SVB deposits are paid in full, with depositors able to access their funds today.

The bombshell news was followed up on Sunday by federal regulators announcing the closure of the New York-based Signature Bank due to what’s deemed as “systemic risk.”

A sign is displayed at a branch of Signature Bank in New York, Monday, March 13, 2023. President Joe Biden is telling Americans that the nation’s financial systems are sound. This comes after the swift and stunning collapse of two banks that prompted fears of a broader upheaval. (AP Photo/Seth Wenig)

Treasury Secretary Janet Yellen told CBS Sunday that there will be no federal bailout for the failed California bank.

“The reforms that have been put in place means that we’re not going to do that again.”

Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.

White House Correspondent Ebony McMorris is a native Washingtonian and University of South Carolina alumna. Her passion is mentoring young adults by teaching community empowerment and media education. She is an NAB member and board member of the Thurgood Marshall Center and was presented the President’s Lifetime Achievement Award for contributing more than 4,000 hours of community service under the Obama Administration.