The collapse of the Silicon Valley bank was the biggest bankrupt since the 2008 financial crisis.
Negotiations are underway if the collapse of Silicon Valley Bank will spread to financial markets and pose a threat to more banks.
The Federal Deposit Insurance Corporation and the Federal Reserve discussed ways to protect depositors by creating a special mechanism, reports Bloomberg.
In particular, they are considering setting up a fund that would allow regulators to maintain more deposits with troubled banks.
According to people familiar with the matter, regulators have held talks with bank executives in the hope of reassuring customers and preventing possible panic.
BILLIONAIRE ON THE COLLAPSE OF SVB: THE GOVERNMENT HAVE 48 HOURS TO FIX AN “IRREVERSABLE ERROR”
On Saturday, the FDIC spoke with officials from several small and medium-sized lenders about their financial situation.
FOX Business has reached out to the Federal Reserve and the FDIC for comment.
How the Silicon Valley bank burned down
A number of other regional lenders also saw their shares drop in the aftermath of the SVB collapse.
The Treasury Department plans to brief a California congressional delegation on Sunday about the collapse of the Silicon Valley bank.
After 40 years, the Silicon Valley bank, the 17th largest in the country, was closed Friday FDIC as regulators switched to protecting clients as he faced a liquidity crunch after losing $2 billion.
The collapse of the Silicon Valley bank hit companies such as CAMP, COMPASS COFFEE
This was followed by an unsuccessful attempt to raise the same amount in a share offering.
Credit: www.foxbusiness.com /