U.S. Senator Alex Padilla (D-Calif.) released the following statement after the Administration took critical steps to fully protect all depositors at Silicon Valley Bank (SVB):
“This decisive action taken by regulators to fully protect all Silicon Valley Bank deposits will ensure that millions of workers across the country will be paid on time — and it will limit the potential damage to California’s and the nation’s economy. It is also important to note that taxpayers will not be on the hook for this critical resolution, and the protections do not extend to shareholders.
“I’ve been in frequent communication with Administration, Treasury, and FDIC officials throughout the weekend to ensure that SVB depositors have access to all of their funds when the bank opens tomorrow morning.
“The events of the past few days have made clear that there must be accountability for the bank managers and executives who paid themselves millions of dollars in bonuses and sold off stock days before SVB collapsed.
“I look forward to working with regulators and the Biden Administration to ensure we have the appropriate and necessary tools to prevent similar situations in the future. That includes revisiting FDIC insurance limits in order to provide depositors with confidence in their financial institutions.”