U.S. vows to fully protect Silicon Valley Bank deposits, beyond FDIC limits, trying to reassure rattled tech startups

The Federal Deposit Insurance Corporation will “complete its resolution of Silicon Valley Bank in a manner that fully protects all depositors, both insured and uninsured,” the Federal Reserve Board announced Sunday afternoon as part of a broader plan to shore up the U.S. financial system following the bank’s sudden downfall.

The move is meant in part to reassure startup leaders in Silicon Valley, Seattle, and elsewhere across the country. Many of those tech leaders have spent the past four days scrambling for solutions after an extraordinary bank run, sparked by a loss of confidence in Silicon Valley Bank’s financial position, made it insolvent late last week.