|Following the failures of Silicon Valley Bank and Signature Bank, the FDIC has confirmed that it is operating two bridge banks. All contracts entered into with SVB and Signature Bank and their counterparties prior to the banks’ failures have been transferred to the bridge institutions, which are backed by the FDIC and the full faith and credit of the U.S. government. FDIC staff continue to work toward transitioning the bridge institutions over to a private sector buyer.
The FDIC has also noted that it’s “too soon to speculate” about how a special assessment on the banking industry will be structured to replenish the Deposit Insurance Fund after the bank failures, but that “we all want that assessment to be as small as possible.”
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