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DOJ and SEC are investigating Silicon Valley Bank's failure

DOJ and SEC are investigating Silicon Valley Bank's failure
How safe is your money? Here's how the US banking system works. The primary role for banks is to take in funds. Those deposits are the money you put in savings or checking accounts as well as deposits from businesses. And even the government banks then pull those funds for loans to borrowers just like you. that access to credit for households and businesses promotes economic growth but just like any other business banks can fail and to be clear, banks fail. Not often, but occasionally every year, perhaps, sometimes we see *** few bank failures. The key though, correct me if I'm wrong for regulators is to make sure it's not *** contagion that it doesn't spread. Exactly. And, and at this point, they have made sure that there is no major contagion. So how can you protect your money? The good news is the government already does that for you. The federal deposit insurance corporation or FDIC insures customer deposits up to $250,000 per customer. No strings attached if I have under $250,000 in *** bank right now. Should I be worried? No, that's very simple. It's insured, that guarantee has always been there and it's cloud completely reliable, but *** bigger problem occurs when customers are worried about losing their money despite that government guarantee and make more and more withdrawals and the bank has in cash on hand to cover them. And that's when banks can buckle, meaning small businesses cannot get the cash they need to make payroll or pay to keep the lights on, making sure banks are safe and sound is why these policies are in place generally designed to limit those risks. And those are the facts in Washington. I'm chief national investigative correspondent, Mark Albert
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DOJ and SEC are investigating Silicon Valley Bank's failure
Video above: Get the Facts: Is it safe to keep your money in banks right now?The U.S. Justice Department and Securities and Exchange Commission are opening investigations into the collapse of Silicon Valley Bank, according to sources familiar with the matter.The federal investigations are in their preliminary stages, a source said, and are looking into both the bank's failure and the actions by senior executives in the lead up to the decision by federal regulators to close the lender last week.To this point no individuals have been accused of any wrongdoing and the person familiar with the matter noted that investigations into a significant event like the failure of Silicon Valley Bank are common.SEC Chairman Gary Gensler, while declining to identify any specific institution, appeared to allude to the likely step in a statement on Sunday. Video below: Silicon Valley Bank customers will have access to money, feds say after fallout"Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws," Gensler said in the statement.The DOJ did not respond to CNN's request for comment.In an extraordinary action to restore confidence in America's banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. By guaranteeing all deposits — even the uninsured money that customers kept with the failed banks — the government aimed to prevent more bank runs and to help companies that deposited large sums with the banks to continue to make payroll and fund their operations.That didn't stop tremors from the collapse impacting markets around the world. However, U.S. stocks surged Tuesday as bank stocks rebounded. The moment of crisis may be over, but the bank sector and the economy remain on a knife's edge. Video below: Finance professor answers questions about Silicon Valley Bank collapse

Video above: Get the Facts: Is it safe to keep your money in banks right now?

The U.S. Justice Department and Securities and Exchange Commission are opening investigations into the collapse of Silicon Valley Bank, according to sources familiar with the matter.

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The federal investigations are in their preliminary stages, a source said, and are looking into both the bank's failure and the actions by senior executives in the lead up to the decision by federal regulators to close the lender last week.

To this point no individuals have been accused of any wrongdoing and the person familiar with the matter noted that investigations into a significant event like the failure of Silicon Valley Bank are common.

SEC Chairman Gary Gensler, while declining to identify any specific institution, appeared to allude to the likely step in a statement on Sunday.

Video below: Silicon Valley Bank customers will have access to money, feds say after fallout

"Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws," Gensler said in the statement.

The DOJ did not respond to CNN's request for comment.

In an extraordinary action to restore confidence in America's banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. By guaranteeing all deposits — even the uninsured money that customers kept with the failed banks — the government aimed to prevent more bank runs and to help companies that deposited large sums with the banks to continue to make payroll and fund their operations.

That didn't stop tremors from the collapse impacting markets around the world. However, U.S. stocks surged Tuesday as bank stocks rebounded. The moment of crisis may be over, but the bank sector and the economy remain on a knife's edge.

Video below: Finance professor answers questions about Silicon Valley Bank collapse