According to the report, Biden may be in danger of a "catastrophic" banking crisis if no rescue plan is enacted before SVB branches open on Monday. If SVB's depositors do not have access to their deposits by Monday morning, "hundreds of billions of dollars" of corporate deposits are likely to be transferred from regional banks to the so-called systemically important banks that are most unlikely to fail, Axios said.
The Federal Deposit Insurance Corporation (FDIC) said that the California Department of Financial Protection and Innovation closed SVB on Friday. It became the largest bank to fail in the US after the 2007–2008 financial crisis.
To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB), to which all insured deposits of SVB were transferred.
On Friday, US Treasury Secretary Janet Yellen convened the leaders of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to discuss developments concerning SVB.