FDICAnd SECwants to take action even though more banks fail in the US.
Regulators are taking additional measures after the collapse of Silicon Valley Bank (SVB), which is the biggest bank failure on record in the US in the last decade. The SEC and FDIC introduced the deposit guarantee fund to prevent possible bankruptcies.
Agenda Deposit Guarantee Funds in the USA
According to sources familiar with the matter, regulators discussed the new special vehicle in talks with bank executives. Regulators aim to set up such a tool to reassure depositors and help contain any panic. Talks continue in public.
The method regulators are focusing on will be presented as part of the SEC’s contingency planning as concerns spread over the health of smaller banks focused on venture capital and startup communities.
Separately, the FDIC on Saturday questioned officials from several small and medium-sized lenders, including First Republic Bank, about their financial standing.
The developments are important for the meeting to be held on Monday.
