In a joint statement on Sunday, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said they were taking action "that fully protects all depositors" at SVB and Signature Bank. 

Roger Altman, the former deputy treasury secretary under Bill Clinton, told CNN that "What the authorities did over the weekend was absolutely profound. They guaranteed the depositors – all of them – at Silicon Valley Bank," he said. "And what that really means – and they won't say this – is that they have guaranteed the entire deposit base of the U.S. financial system." He said that because all SVB deposits were protected, deposits in other banks are also guaranteed. He stated, "So, this is a breathtaking step which effectively nationalizes, or federalizes, the deposit base of the U.S. financial system."

Summary by JW WIlliams

In a joint statement on Sunday, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said they were taking action "that fully protects all depositors" at SVB, that did business with tech startups and another shuttered firm, Signature Bank in New York, that served the cryptocurrency industry.

The extraordinary rescue would allow all depositors at the banks to have access to all of their money, even if it exceeded FDIC limits of $250,000. The feds said that "no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer." However, the cost of bailing out two banks that catered to the tech industry will likely be paid by average Americans in the former of more fees, less service and potentially higher taxes.