Government to backstop SVB deposits; Signature Bank shuttered

It was one of the most tumultuous weekends in the history of fintech, as federal regulators and government agencies took swift action to stop the bleeding after Silicon Valley Bank suddenly collapsed.

LIVE BLOG: Silicon Valey Bank crisis

The Washington Post first reported Sunday night that the Biden administration moved to guarantee all deposits at the failed bank — central to most fintech investors and operating companies — as of Monday morning.

The reaction was all over the map, from praise for quick action:

To scorn for the double standard and untouchable attitudes of some on social media:

SEC chair Gary Gensler said any bad actors are not out of the woods just because the deposits are covered.

Gary Gensler, SEC Chairman
FILE – Gary Gensler testifies on Capitol Hill in Washington.

“In times of increased volatility and uncertainty, we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any misconduct that might threaten investors, capital formation, or the markets more broadly,” Gensler said in a posted statement.

“Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.”

As this plan was announced, regulators also moved to shut down and take over Signature Bank, and they made a similar promise to cover those deposits as of Monday as well.

This week, we will have much more on this story with full reaction and context.

  • John K. White

    John has been in communications since graduating from Creative Communications at Red River College Polytechnic in Winnipeg in 1992. He launched one of Canada's first digital-only local news sites called Winnipeg First in 2007, which led to digital editor postings with the Winnipeg Free Press and Edmonton Journal. In 2012 he joined Bankless Times as managing editor, later becoming president and CEO. He and the Bankless Media co-founders completed a sale and exit in August 2021.