The official said the steps were taken to stabilize the
financial system and protect depositors, and did not constitute
a bailout of either firm. No losses of either bank will be borne
by U.S. taxpayers, the official said.
Together with the Federal Reserve's decision to make funds
available to eligible financial institutions and ensure they can
meet the needs of all their depositors, the steps would "restore
market confidence," the official said.
(Reporting by Andrea Shalal and Pete Schroeder; Editing by
Leslie Adler)
WASHINGTON, March 12 (Reuters) - New policies adopted on
Sunday by U.S. banking regulators will "wipe out" equity and
bondholders in Silicon Valley Bank and Signature Bank of New York while protecting all customer deposits, a
senior U.S. Treasury official said.
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