/cloudfront-us-east-2.images.arcpublishing.com/reuters/WEXO2VRANJLXPM4YYJXVAURUVE.jpg "FDIC returned $40 bln in U.S. Treasury funds, reversing withdrawal after SVB takeover")
FDIC returned $40 bln in U.S. Treasury funds, reversing withdrawal after SVB takeover
WASHINGTON, March 15 (Reuters) - The Federal Deposit Insurance Corp deposited $40 billion back into the U.S. Treasury General Account on Tuesday, reversing a $40 billion withdrawal on Friday as the regulator took control of the failed Silicon Valley Bank, Treasury financial data released on Wednesday showed.
On Tuesday, before the restoration of the funds was disclosed in the latest Daily Treasury Statement, the Treasury said that the $40 billion withdrawal would not affect estimates for when it would no longer be able to pay all U.S. government bills without a debt ceiling increase.
After the initial $40 billion withdrawal on Friday as SVB Financial was closed and put under FDIC receivership, the Treasury, FDIC and Federal Reserve on Sunday announced guarantees for both insured and uninsured deposits at the institution to shore up confidence in the banking system.
The same protections were offered to New York's Signature Bank (SBNY.O), which failed on Sunday, and the Federal Reserve opened a new facility to give the banks access to emergency funds.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/O46IVMNO6BKYZEQQBCUX5PBSVM.jpg)
