10:57 a.m. ET, March 14, 2023
What the FDIC acquisitions of Silicon Valley Bank and Signature mean for their customers and employees
From CNN’s Jeanne Sahadi
(Al Drago/Bloomberg/Getty Images)
Here’s where things stand for customers and employees of Silicon Valley Bank and Signature Bank, both of which failed this week and were immediately taken over by the FDIC.
Do customers want full access to all their money on deposit? Yes. The US government intervened over the weekend, assuring that the banks’ depositors will have access to all their money from Monday, March 13, and that losses related to SVB’s collapse will not be borne by taxpayers.
Both SVB and Signature were FDIC insured. This means that the FDIC insures up to $250,000 per depositor for each account ownership category. Some customers may be insured for more than $250,000 if they had more than one type of deposit account, as each account is covered separately. What’s more, if more than one person owns an account jointly, each owner is covered up to $250,000.
Can customers continue to keep their money where it is? Yes, but the FDIC will communicate to customers how long they can continue to do so. So far, the FDIC has not set any end-of-service dates for SVB or Signature customers.
What if a customer has a loan through SVB or Signature? Customers with a loan must still pay to the same payment address even if the FDIC ends up selling the loan. Any changes will be notified.