U.S. Regulators Race To Stem SVB Collapse Panic: Reports #shorts

In a race to contain the panic over the Silicon Valley Bank collapse, media reports on Saturday said the Federal Reserve and Federal Deposit Insurance Corporation, or FDIC, were weighing the creation of a new fund that would allow them to backstop more deposits at banks that run into trouble.

According to the Bloomberg report, regulators discussed the so-called “new special vehicle” with banking executives, in hope that such a measure would reassure depositors and help stem any panic.

The Federal Reserve declined to comment, while FDIC did not immediately respond.

The White House said earlier on Saturday that President Joe Biden had spoken with California Governor Gavin Newsom about efforts to address the issue, but did not give details.