Is this a bailout and 6 other questions about the SVB collapse

The Silicon Valley Bank rescue plan, explained

Outside the Silicon Valley Bank offices in Palo Alto, Calif., on Friday. (Jason Henry for The Washington Post)
9 min

The U.S. government announced late Sunday that it would guarantee all deposits at Silicon Valley Bank, which regulators shut down Friday. Officials also revealed that they had shut down a second bank, Signature Bank of New York, and extended the same deposit protections to its customers. And the Federal Reserve announced it would create a separate lending facility to protect other banks from the ripple effects and prevent bank runs.

The moves capped three days of frenzied activity in the tech sector and among the nation’s top banking regulators, who feared the collapse of SVB could quickly trigger a much broader financial crisis.

“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” said a joint statement from the Treasury Department, the Fed and the Federal Deposit Insurance Corporation.

That statement likely represents the beginning, not the end, of a debate over the federal response to the crisis. Here’s what you need to know about the bank rescue plan.