In a related action, the government shut down Signature Bank, a regional bank that was teetering on the brink of collapse in recent days. Signature’s customers will receive a similar deal, ensuring that even uninsured deposits will be returned to them Monday. SVB sold billions of dollars of those securities at a steep loss last week to obtain enough cash to pay customers’ deposit withdrawals. As of the end of last year, SVB said it had $151.5 billion in uninsured deposits, $137.6 billion of which was held by American customers. Customers yanked $42 billion from Silicon Valley Bank on Thursday, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing.

Source: CNN March 13, 2023 03:23 UTC