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The US government has intervened in a bid to assure investors that the US banking sector is safe.
The intervention comes after the shutdown of Silicon Valley Bank and Signature Bank, as they were unable to pay back customers who sought to withdraw their deposits.
The US Federal Deposit Insurance Corporation has taken control of both institutions.
US President Joe Biden addressed the issue today, assuring depositors that "they'll be protected and they'll have access to their money as of today".
He made clear that "no losses will be borne by the taxpayers", adding that the money will instead "come from the fees that banks pay into the deposit insurance fund".
"Because of the actions that our regulator has already taken, every American should feel confident that their deposits will be there if and when they need them," he said.
Mr. Biden said the leadership of the banks will be fired.
But investors in both institutions will not be compensated.
The Federal Reserve today announced that it has launched a review of the supervision and regulation of Silicon Valley Bank, following the lender's sudden implosion.
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