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(FILES) In this file photo taken on March 10, 2023, property manager representative passes a sign at Silicon Valley Bank�s headquarters in Santa Clara, California. - US authorities unveiled sweeping measures Sunday to rescue depositors' money in full from failed Silicon Valley Bank and to promise other institutions help in meeting customers' needs, as they announced a second tech-friendly bank had been closed by regulators. (Photo by NOAH BERGER / AFP)
NEW YORK: US authorities were preparing "material action" on Sunday to shore up deposits in Silicon Valley Bank (SVB) and stem any broader financial fallout from its sudden collapse, sources familiar with the matter told Reuters.
Biden administration officials worked through the weekend to assess the impact of startup-focused lender SVB Financial Group's (SIVB.O) failure on Friday, with a particular eye on the venture capital sector and regional banks, the sources said.
Details of the announcement expected on Sunday were not immediately available, according to Reuters. One source said the Federal Reserve had acted to keep banks operating during the COVID-19 pandemic, and could take similar action now.
"This will be a material action, not just words," one source said.
Earlier, US Treasury Secretary Janet Yellen said that she was working with banking regulators to respond after SVB became the largest bank to fail since the 2008 financial crisis.
