Silicon Valley Bank collapses as Biden backstops all deposits

Silicon Valley Bank (SVB), the 16th-largest U.S. bank with $209 billion in assets, fails in 48 hours after a bank run triggered by fears about losses in its bond portfolio from rising interest rates. It is the second-largest U.S. bank failure in history, behind Washington Mutual in 2008. The FDIC seizes SVB on March 10. Two days later, Signature Bank also fails. The Biden administration, in an emergency Sunday announcement, guarantees all deposits at both banks above the $250,000 FDIC limit using the "systemic risk exception," protecting roughly $175 billion in deposits without using taxpayer funds. Biden calls for new regulation of midsize banks, blaming Trump-era Dodd-Frank rollbacks.