SVB, Signature Depositors Won’t Lose Their Money. What Happens if Another Bank Fails?

Regulators say they would take similar actions if they think another bank collapse would jeopardize financial system

PHOTO ILLUSTRATION: Madeline Marshall

Federal regulators made the emergency decision earlier in March to guarantee that all depositors at failed Silicon Valley Bank and Signature Bank could get their money back, regardless of how much was in their accounts.

Regulators have said they hoped the decision would prevent a broader run on banks. The intervention has prompted questions from banks, bank customers and lawmakers about the government’s deposit-insurance program—and what would happen if another bank went under.

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