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US to guarantee deposits at SVB after collapse

US authorities say they have taken emergency measures to shore up the banking system after a string of bank failures raised concerns about financial stability.

The government said it would guarantee all deposits at Silicon Valley Bank and Signature Bank, which were taken over by authorities.

It wants to stop a rush of withdrawals that hit SVB last week from spreading.

President Joe Biden said Americans should be rest assured that the banking system is safe.

BBC further reports that President Joe Bidden assured that People and businesses who have money deposited with SVB would be able to access all their cash from today Monday.
Meanwhile, The Hongkong and Shanghai Banking Corporation (HSBC) has bought the UK arm of the collapsed US Silicon Valley Bank (SVB), bringing relief to UK tech firms who warned they could go bust if they did not get help.

Customers and businesses could now breathe sigh of relief as those who had been unable to withdraw their money will be able to access it as normal.

The government and the Bank of England led the talks for the deal, which involved no taxpayer money.

HSBC said it paid just £1 for the SVB’s UK arm.

Silicon Valley Bank which specialised in lending to technology companies was shut down by US Federal regulators last Friday in what was the largest failure of a US bank since 2008.

Writing by Chinasa Ossai, Editing by Tersoo Nicholas