The White House said on Saturday that President Joe Biden had spoken with California Governor Gavin Newsom about the bank and efforts to address the situation. The Fed and FDIC did not immediately respond to a request for comment. However, it was not clear if regulators would have political support to throw a lifeline to the bank, which catered to Silicon Valley startups and investors. Regulators discussed the new special vehicle in conversations with banking executives and hoped such a measure would reassure depositors and help contain any panic, the report said. ![]() The US Federal Reserve and the FDIC were weighing the creation of a fund that would allow regulators to backstop more deposits at banks that run into trouble, Bloomberg reported. With US$209 billion (S$282.4 billion) in assets, the Santa Clara, California based lender was the 16th largest US bank, making the list of potential buyers who could pull off a deal over a weekend relatively short, they said on condition of anonymity because the situation is in flux. Some industry executives said such a deal would be sizeable for any bank and would likely require regulators to give special guarantees and make other allowances for any buyer. Reuters was unable to determine whether a deal was forthcoming. The Federal Deposit Insurance Corporation (FDIC), which was appointed receiver, was trying to find another bank over the weekend that was willing to merge with Silicon Valley Bank, people familiar with the matter said on Friday. ![]() ![]() Startup-focused lender SVB Financial Group, the parent organisation of Silicon Valley Bank (SVB), became the largest bank to fail since the 2008 financial crisis on Friday, roiling markets and leaving billions of dollars belonging to companies and investors stranded. NEW YORK - Some financial industry executives and investors were growing increasingly concerned on Saturday that the collapse of Silicon Valley Bank could have a domino effect on other US regional banks if regulators did not find a buyer over the weekend to protect uninsured deposits.
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