March 17,2023

Last week the California Department of Financial Protection and Innovation closed Silicon Valley Bank and named the Federal Deposit Insurance Corporation (FDIC) as receiver. On Sunday, the New York Department of Financial Services took similar action with Signature Bank (NY). Both institutions operated lines of business with specific and unique risks and concentrations, but their closures created more general concern in financial markets. Subsequently, the US Treasury Department, Federal Reserve, and FDIC jointly announced that all depositors in both institutions would be made whole, and the Federal Reserve also announced a new lending program intended to support banks and their depositors and ensure the soundness of the banking system. Read More