Silicon Valley Bank customers line up to take money out of Wellesley branch
WELLESLEY – Silicon Valley Bank customers in Wellesley lined up Monday morning to take their money out of the failed institution after an uneasy weekend.
Silicon Valley Bank was seized by regulators on Friday
President Joe Biden made brief remarks from the White House Monday, saying "Americans can have confidence that the banking system is safe."
"Your deposits will be there when you need them," the president said. "Small businesses across the country that deposit accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills, and their hard-working employees can breathe easier as well."
The president's comments came after U.S bank regulators spent the weekend working on a plan to shore up the public's confidence in the soundness of the financial system and limit spillover effects following the closing of Silicon Valley Bank last week.
Biden administration officials announced Sunday that depositors with accounts at Silicon Valley Bank would have access to all of their money beginning Monday, and "no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
Silicon Valley Bank has 17 branches in California and Massachusetts
"I can't be the only one who wants to get their cash out of here," Richard Carver of Newton said outside the Wellesley branch.
Dave Barry runs an electrical business. He was waiting in line Monday hoping to walk away with either a check or a transfer. Barry said it was a stressful weekend.
"Zero information. And we have an obligation with payroll. We're an electrical business and we have to meet payroll this afternoon. So that's why I'm here," Barry said. "Everybody else in line is probably doing the same exact thing. Everybody's situation is different, so hopefully everybody will come out of this on the plus side."
According to a Treasury Department official, the Federal Deposit Insurance Corporation is going to use funds from the Depositor Insurance Fund.
During an interview on CBS News' Face the Nation Sunday, Treasury Secretary Janet Yellen ruled out a bailout for Silicon Valley Bank's investors.
"We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," Yellen said.