Thousands of tech CEOs and founders have signed an "urgent" petition calling for relief from the federal government after Silicon Valley Bank's collapse, the second largest in U.S. history. The government has responded by guaranteeing all customers access to their full deposits, providing some much-needed relief. However, the tech industry is still reeling from this "extinction-level event" and its long-term effects remain to be seen.
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President Joe Biden announced Monday that the government will not use taxpayer money to backfill customers' deposits of the failed Silicon Valley Bank and Signature Bank, instead drawing from the Deposit Insurance Fund. He emphasized that no losses will be borne by the taxpayer, and that CDs are a great way to earn more interest on your money without taking on much investment risk.
President Joe Biden has sought to reassure Americans that the nation's financial systems are safe following the closure of two banks, Silicon Valley Bank and Signature Bank, on Friday. The U.S. Treasury, Federal Reserve, and FDIC have guaranteed all deposits and stated that the measures taken to protect SVB deposits will not be funded by taxpayers. Shareholders and bondholders of the failed banks will not be compensated for their losses.
Key takeaways: The U.S. government is deploying emergency measures to backstop deposits at Silicon Valley Bank and Signature Bank. The FDIC has granted a systemic…