US lawmakers met with Fed, FDIC to discuss Silicon Valley Bank collapse: source

On Friday, US lawmakers met with the Federal Reserve and the Federal Deposit Insurance Corp. to discuss the collapse of Silicon Valley Bank (SVB).

A number of lawmakers expressed concern after SVB’s collapse earlier on Friday, including Waters.

“I am alarmed by the failure of Silicon Valley Bank, which marks the second largest bank failure in U.S. history,” she said in a statement. “I am closely monitoring and convening committee members with regulators so that myself and members can understand the latest news regarding the shutdown of Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation (DFPI) and the Federal Deposit Insurance Corporation (FDIC) Appointed Receiver I appreciate the DFPI and the FDIC for taking decisive action today, and I remain confident in the U.S. financial markets and in the ability of our regulators protect consumers and investors.

Several California lawmakers tweeted that they were also monitoring the situation. One of the main concerns is whether depositors would receive any portion of their funds beyond the FDIC’s $250,000 limit per account.

“We need to ensure that all deposits over the FDIC limit of $250,000 are honored. Banking is about trust. If depositors lose confidence in the safety of their deposits over $250,000, we will have problems,” he said.

Treasury Secretary Janet Yellen also met with banking regulators from the Fed, FDIC and Office of the Comptroller of the Currency, according to a department statement.

“Secretary Yellen expressed full confidence in banking regulators to take appropriate action in response and noted that the banking system remains resilient and that regulators have effective tools to deal with this type of event,” said the press release.

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