WASHINGTON — U.S. regulators are racing against the clock to find solutions for failed Silicon Valley Bank while Treasury Secretary Janet Yellen said officials are focusing on protecting depositors, as officials seek to avoid a wider bank run.
After SVB collapsed into receivership on Friday in the biggest bank failure in more than a decade, the Federal Deposit Insurance Corp. kicked off an auction process for its assets late Saturday, as it aims to make a portion of clients’ uninsured deposits available as soon as Monday, according to people with knowledge of the situation. The agency and the Federal Reserve have also discussed a fund to backstop deposits if more banks fail as part of wider contingency planning, people said.
Those efforts are aimed at protecting depositors, rather than bailing out investors, Yellen said on CBS’ “Face the Nation” on Sunday.
