Business & Tech
Deposits Safe At Failed Silicon Valley Bank, Biden Says
Silicon Valley Bank failed Friday after depositors and investors tried to withdraw $42 billion from the bank the day before.
SANTA CLARA, CA — All deposits held by Silicon Valley Bank customers will be available regardless of the amount of their deposits, federal officials said over the weekend.
That includes businesses who must pay their employees and their bills.
"Americans can have confidence that the banking system is safe," President Joseph Biden said Monday morning. "Your deposits will be there when you need them."
Find out what's happening in Los Gatosfor free with the latest updates from Patch.
Investors will not be protected because they took a risk and "that's how capitalism works," Biden said.
Taxpayers will not be on the hook for the losses. Money to cover the losses will come from fees that banks pay into the deposit insurance fund, Biden said.
Find out what's happening in Los Gatosfor free with the latest updates from Patch.
Silicon Valley Bank failed Friday after depositors and investors tried to withdraw $42 billion from the bank Thursday, which had $175 billion in deposits at the end of last year. The withdrawals left the bank with a negative cash balance of nearly $1 billion Thursday.
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