The US intervened to Save the SVB Bank and Calm the Financial System

The US administration stepped in on Sunday with a series of emergency measures to shore up confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a wider systemic crisis.

After a dramatic weekend, US regulators said customers of the failed bank would have access to all their deposits from Monday and regulators created a new tool to give banks access to emergency funds. The Federal Reserve also made it easier for banks to borrow from it in emergencies.

Regulators also quickly shut down New York's Signature Bank, which had been under pressure in recent days.

President Joe Biden said Sunday night that the Treasury secretary and the director of the National Economic Council have been working diligently with bank regulators to address the problems at the two banks.

"The American people and American businesses can rest assured that their bank deposits will be there when they need them," Biden said in a statement. "I am determined to hold those responsible for this mess fully accountable and to continue our efforts to strengthen supervision and regulation of the larger banks so that we are not in this situation again."

A sense of relief swept through Silicon Valley and global markets as the regulator's announcement came just as US futures opened for trading in Asia.

"We think the steps taken by the Fed, the Treasury Department and the FDIC will decisively break the psychological sense of doom in the regional banking sector," said Karl Schamotta, chief market strategist at Corpay in Toronto. "But, fair or not, this episode will contribute to higher levels of background volatility, with investors cautiously watching for other cracks to appear as the Fed's...