Inside Bidens SVB move to stop future bank runs
- What they are saying: “We took sweeping action, powerful action, trying to prevent possible future bank runs,” a Treasury official told Axios.Driving the news: The government's move began to unfold Thursday, amid questions about SVB’s ability to survive until the weekend.
- Open a new Fed lending facility to help banks that needed help meeting withdrawals.On Saturday, Treasury Secretary Janet Yellen, Fed Chair Jerome Powell, Fed Vice Chair Michael Barr and FDIC Chair Martin Gruenberg decided to move forward with that three-step plan.
- The FDIC and the Fed decided to move the bank into receivership before its branches opened at 9 a.m. Pacific time on Friday, according to a source familiar with the matter.
- Editor's note: This story has been corrected to reflect that not all SVB and Signature account holders had payrolls that were jeopardized.
- Try to find buyers for the banks.
The Biden administrations guiding principle in protecting depositors after the failures of Silicon Valley Bank and Signature Bank came down to this, Axios has learned Prevent bank runs beyond the i [+3486 chars]