A Look At The Feds' Extraordinary Reaction To SVB Collapse
- Franca Gutierrez, Yoon Hi Greene, Michael Dawson, Julie Williams
- 3.16.2023
In an Expert Analysis article published by Law360, Partners Franca Harris Gutierrez, Michael Held, Yoon Hi Green and Michael Dawson, Senior Counsel Julie Williams, Senior Associate Cory Hansen and Associate Andrew Lindsay analyze the government’s response to the recent bank failures and answer the pressing question: What is next?
Excerpt: On Sunday evening, the U.S. Department of the Treasury, Federal Reserve, and the Federal Deposit Insurance Corporation announced measures to (1) prevent losses to all depositors — including all uninsured depositors — after Silicon Valley Bank and Signature Bank failed and entered into FDIC receivership and (2) provide liquidity support to banks.
Together, as made clear in the joint statement[1] issued by the agencies, the agencies are emphatic that the "actions demonstrate [their] commitment to take the necessary steps to ensure that depositors' savings remain safe." Viewed in tandem, this is an extraordinary combination of government support.
