Several sources are reporting the Federal Deposit Insurance Corp. and Federal Reserve will make good the depositors at Silicon Valley Bank. SVB was taken over following its failure earlier in the week.
What is being reported is that deposits larger than those covered by FDIC will be made good, presumably to prevent a wave of runs and possible closures in other banks. It is also reported that there is underway a search for some other bank willing to purchase SVB's assets.
I presume SVB shareholders are out of luck and their stock worthless. One supposes the troubles at SVB are related, at least indirectly, to the mass layoffs in the high tech industry which has done much of its banking with SVB. The Fed raising interest rates to stem inflation is also implicated in SVB's troubles.
