In addition to SVB, the authorities will allow access to all deposits at another credit institution, Signature Bank, which was shut down by the regulator, to widespread surprise, according to an official statement.The Federal Reserve (Fed) has also pledged to lend the necessary funds to other banks that may need to honour their clients’ withdrawal requests.

These measures were taken jointly by Treasury Secretary Janet Yellen, the Fed and the Federal Deposit Insurance Corporation (FDIC), after consulting with US President Joe Biden, according to a joint statement.The whole intervention bears witness to the turmoil threatening the US banking system, disrupted by the Fed’s forcible efforts to tighten monetary policy.The Fed’s measures have put pressure on banks’ margins, enco…