The recent bank closures — Silicon Valley Bank getting the most attention, but also Signature Bank — initially raise questions of whether companies would have access to their funds and, among other things, the ability to pay their CRE rents.
Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg made clear in a joint statement that deposits would be available starting Monday, March 13.
"[SVB depositors] will have access to all of their money starting Monday, March 13," the statement said. "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer." Shareholders and "certain unsecured debtholders" won't be protected.
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