On Friday, lawmakers from the United States convened with the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) to discuss the recent collapse of Silicon Valley Bank (SVB). Rep. Maxine Waters of California held briefings with officials from the two federal bank regulators and the Treasury Department in the late hours of the day, following the takeover of the bank by the California Department of Financial Protection and Innovation. According to a source familiar with the matter, lawmakers from both major political parties were present at the meetings with regulators.
Lawmakers, including Rep. Maxine Waters, expressed their concern after the collapse of Silicon Valley Bank on Friday, which marks the second largest bank failure in U.S. history. Waters issued a statement, saying she was closely monitoring the situation and convening Committee members with regulators to understand the latest information about the closure of SVB. Several California lawmakers also tweeted that they were following the situation. One of the concerns raised was whether depositors would receive any portion of their funds beyond the FDIC's limit of $250,000 per account.
The FDIC announced that it would provide uninsured depositors with an advance dividend and a receivership certificate. Companies that banked with SVB may face difficulties in meeting payroll, and checks or wires initiated before the bank's collapse may fail.