FDIC scrutinised over move to cover all SVB deposits

Advisory panel questions whether guaranteeing uninsured deposits was necessary to prevent contagion

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The US Federal Deposit Insurance Corporation’s argument that it needed to safeguard all uninsured deposits at Silicon Valley Bank to prevent further bank runs was questioned at a meeting of the agency’s systemic resolution advisory committee on December 5. 

Immediately after SVB failed on March 10, the FDIC only guaranteed the safety of insured deposits, while holders of uninsured deposits were promised “a receivership certificate” that entitled them to a share of the proceeds from the sale of

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