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WASHINGTON—Lawmakers could reduce the risk of bank runs by significantly raising deposit-insurance protection for accounts used for payroll and other business payments, the Federal Deposit Insurance Corp. said in a report Monday.  A targeted move to make sure businesses can get back money intended for such payments if a bank fails was the best of three options the FDIC considered for overhauling the deposit-insurance system, the agency said.  WASHINGTON—Lawmakers could reduce the risk of…

First Republic Bank (FRB), on the brink of collapse in the weeks after the Silicon Valley Bank crisis, has finally fallen over, but with a relatively quick resolution into its next chapter: today the Federal Deposit Insurance Corporation (FDIC) announced that it was being closed by the the California Department of Financial Protection and Innovation, that the FDIC was appointed as receiver, and that the FDIC would be selling the assets to JPMorgan. Its assets and deposits total just over $330 billion combined.…

Big banks including JPMorgan Chase & Co. and PNC Financial Services Group Inc. are vying to buy First Republic Bank in a deal that would follow a government seizure of the troubled lender, according to people familiar with the matter. A seizure and sale of First Republic by the Federal Deposit Insurance Corp. could come as soon as this weekend, the people said. Big banks including JPMorgan Chase & Co. and PNC Financial Services Group Inc. are vying to buy First…

The Federal Deposit Insurance Corporation on Monday named former Fannie Mae head Tim Mayopoulos as the chief executive officer of Silicon Valley Bank, a subsidiary of the defunct SVB Financial Group.He steps in after regulators shuttered the startup-focused lender on Friday after a run on its deposits that left it with a dearth of capital.Mayopoulos served as the chief executive officer of mortgage financier Fannie Mae for more than six years before he joined fintech Blend. The collapse of SVB, the biggest bank to fail…

To protect all depositors of Silicon Valley Bank, the US Federal Deposit Insurance Corporation (FDIC) today transferred all deposits—both insured and uninsured—and a substantial part of all all assets of the now-shut to a newly created ‘bridge bank’, which will be operated by the US agency. The FDIC also named Tim Mayopoulos as CEO of Silicon Valley Bank, N.A, the bridge bank. Mr. Mayopoulos is former president and CEO of the Federal National Mortgage Association and most recently served as president of Blend Labs, Inc.A…

The joint statement from the US Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) stating that depositors will have access to all of their money starting Monday, March 13 in connection with the Silicon Valley Bank (SVB) collapse has come as a relief to the startups who were exposed to the bank. Startups hope the crisis would now be resolved soon. "FDIC's communication yesterday saying all depositors will get access to their funds is a relief to the startup community," said Prabhu Ramachandran, CEO…

Amid US administration's move to protect depositors of Silicon Valley Bank, IT Minister Ashwini Vaishnaw on Monday said that the SVB resolution is "reassuring" and will bring relief to startups. The Biden administration has announced that depositors of the failed Silicon Valley Bank will have access to their money from Monday. "SVB resolution is reassuring. (It) will bring relief to startups," Vaishnaw told PTI. US President Joe Biden on Monday sought to reassure Americans that they can have confidence that the US banking…

U.S. Treasury Secretary Janet Yellen on Sunday said that the federal government will not provide a bailout for Silicon Valley Bank's investors after the bank was abruptly shuttered, but said financial regulators are "concerned" about the impact to depositors and working to address their needs, media reports said."During the financial crisis, there were investors and owners of systemic large banks that were bailed out," Yellen said in an interview, CBS News reported."And the reforms that have been put in place means that…

More than 400 venture capital firms have issued a joint statement in support of the recently collapsed California-based Silicon Valley Bank (SVB), a major lender for startups globally. Hemant Taneja, CEO of VC firm General Catalyst tweeted and informed about the development, Sunday. “Sunday: In last 36 hrs, 400+ VC firms w/ trillions in AUM signed on to support @SVB_Financial. Role in global ecosystem is critical for our industry/world to continue responsible innovation & supporting vibrant economy. More tk; support…

An auction for the remaining assets of the failed Silicon Valley Bank is reportedly underway, with final bids due this afternoon and a result potentially arriving late Sunday, according to Bloomberg. Bloomberg says that the U.S. Federal Deposit Insurance Corp. (FDIC), which stepped in and shut down SVB on Friday as it was experiencing an unprecedented run on funds by its clients, is hoping to conclude the auction before markets open on Monday morning. A fast sale could help the FDIC make at least some of the…