In response to the failures of Silicon Valley Bank (SVB) and Signature Bank, US authorities took immediate action on Sunday to support the financial sector.
The government announced that starting on Monday, both individuals and businesses with money deposited with SVB would have access to all of their funds.
With increased pressure, regulators also closed the New York-based Signature Bank.
Later on Monday, President Joseph Biden will speak about the eventful financial sector weekend.
He pledged to bring “those responsible for this debacle completely accountable” in a statement.
Regulators shut down SVB, which specialized in lending to technology startups, on Friday after seizing its assets. Since the beginning of the financial crisis in 2008, it was the biggest failure of a US bank.
Depositors would be completely safeguarded, according to a statement from the US Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC). The change won’t result in any losses for the taxpayer, it claimed.