Fed in talks to create a fund to backstop deposits if more banks fail - report

The FDIC and Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term is mulling a fund that would allow regulators to backstop more deposits at banks that run into trouble, according to a Bloomberg report.

The report says regulators discussed what would be a new special vehicle in conversations with bank executives, citing people familiar.

" The hope is that setting up such a vehicle would reassure depositors and help contain any panic, said the people.," according to the report.

This sounds like an interesting option because it lets Silicon Valley Bank go while trying to step the contagion, though the details here are far from certain.

A separate report says US regulators are racing to sell SVB assets and make a portion of clients' uninsured deposits available as soon as Monday. The sources in the report said 30-50% or more.