Free Republic

Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes, according to a source close to the situation. One way that the regulators would step in would be to create a backstop for uninsured deposits at Silicon Valley Bank, using an authority from the Federal Deposit Insurance Act -snip- Another option would be a “general banking facility” from the Federal Reserve that would support other financials with exposure to SVB.

House Speaker Kevin McCarthy, R-Calif., said Sunday that he’s “hopeful” federal officials will make an announcement on the collapse of Silicon Valley Bank before the market opens. McCarthy said in an appearance on Fox News’ “Sunday Morning Futures" that he's spoken with Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen after regulators shutdown SVB, one of the leading lenders to the tech sector. “They do have the tools to handle the current situation, they do know the seriousness of this and they are working to try to come forward with some announcement before the markets open,” McCarthy said....