10:57 am ET, March 14, 2023
What the FDIC Acquisition of Silicon Valley Bank and Signature Means for Their Customers and Employees
From CNN’s Gene Sahadi
(Al Drago/Bloomberg/Getty Images)
Here it is Where things are for customers and employees Both Silicon Valley Bank and Signature Bank failed this week and were promptly taken over by the FDIC.
Will customers have full access to all funds on deposit? Yes. The US government intervened over the weekend, promising that bank depositors would receive their money from Monday March 13 and that taxpayers would not bear the losses related to SVB’s collapse.
That means customers can access their insured deposits and uninsured deposits through the FDIC-created “bridge bank” for SVB deposits and the “bridge bank” created for signature deposits.
Both SVB and Signature are FDIC insured. That means the FDIC insures up to $250,000 per depositor for each account ownership category. Some Customers can cover up to $250,000 If they have more than one type of deposit account, each account is closed separately. What’s more, if more than one person jointly owns an account, each owner is covered up to $250,000.
But the move by the three agencies is crucial to give customers access to their uninsured deposits. For example, most SVB customers are businesses, and they have more than $250,000 in deposits because they use SVB for most of their cash management, including payroll.
Can customers continue to keep their money where it is? Yes, but the FDIC will tell customers how long they can continue to do so. At this time, the FDIC has not established any end dates for services to SVB or Signature customers.
What if a customer gets a loan through SVB or Signature? Even if the FDIC sells the loan, borrowers must make payments to the same billing address. Any changes will be notified.