US Fed Announcement

FED: BTFP IS BIG ENOUGH TO COVER ALL US UNINSURED DEPOSITS Federal Reserve: Bank Term Funding Program Is Big Enough To Cover All US Uninsured Deposits - Acting As Lender Of Last Resort, No One Getting Bailed Out - New Facility Designed To Prevent Treasury Firesales - Emergency Facility Was Approved Unanimously By Board FEDERAL RESERVE OFFICIALS: THE TWO FAILED BANKS' OWNERS WILL LOSE THEIR INVESTMENTS. Federal reserve officials: there is no definitive figure for what will be available in facility lending; the goal is to meet bank liquidity demand as it arises. FEDERAL RESERVE OFFICIALS: SYSTEMIC RISK WAS PERCEIVED AS A THREAT IN TODAY'S FRAGILE FINANCIAL MARKETS.

The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. US FEDERAL RESERVE AND TREASURY: THE TAXPAYER WILL BEAR NO LOSSES ASSOCIATED WITH THE RESOLUTION OF SILICON VALLEY BANK. U.S. FEDERAL RESERVE AND TREASURY: TODAY'S ACTIONS DEMONSTRATE U.S. COMMITMENT TO TAKE 'NECESSARY STEPS' TO ENSURE THAT DEPOSITORS' SAVINGS REMAIN SAFE US FEDERAL RESERVE: USING THE EXCHANGE STABILISATION FUND, THE TREASURY DEPARTMENT WOULD PROVIDE $25BLN IN CREDIT PROTECTION TO THE FEDERAL RESERVE BANKS IN CONNECTION WITH THE BANK TERM FUNDING PROGRAMME.

US SAYS SVB DEPOSITORS WILL HAVE ACCESS TO ALL MONEY TODAY US FEDERAL RESERVE AND TREASURY: WE ARE TAKING DECISIVE STEPS TO PROTECT THE US ECONOMY BY INCREASING PUBLIC TRUST IN OUR BANKING SYSTEM. Federal Reserve Board announces it will make available additional funding to eligible depository institutions To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy. The Federal Reserve is prepared to address any liquidity pressures that may arise. The financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress. With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP. The Federal Reserve does not anticipate that it will be necessary to draw on these backstop funds. After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, Treasury Secretary Yellen, after consultation with the President, approved actions to enable the FDIC to complete its resolution of Silic US Federal Reserve: Ready To Address Any Liquidity Pressures That May Arise *US SAYS SIGNATURE BANK CLOSED TODAY BY STATE AUTHORITY