Question: What did the U . S . Treasury end up doing in response to the run on Silicon Valley Bank in 2 0 2 3
What did the US Treasury end up doing in response to the run on Silicon Valley Bank in
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Nothing. SVB failed as it deserved to
Treasury deferred to the FDIC, which insured borrowers under $ and prevented the run from leading to a broader panic.
Treasury declared that they would insure all deposits, even those over $ to prevent broader panic.
Treasury seized control of SVB paid back depositors, and soldoff all remaining assets.
Treasury guided SVB through a structured default.
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