US marshalling 'material action' to stem Silicon Valley Bank fallout

US authorities were preparing "material action" on Sunday to shore up deposits in Silicon Valley Bank (SVB) and stem any broader financial fallout from its sudden collapse, sources familiar with the matter told Reuters.

Biden administration officials worked through the weekend to assess the impact of startup-focused lender SVB Financial Group's (SIVB.O) failure on Friday, with a particular eye on the venture capital sector and regional banks, the sources said.

Details of the announcement expected on Sunday were not immediately available, according to Reuters. One source said the Federal Reserve had acted to keep banks operating during the COVID-19 pandemic, and could take similar action now.

"This will be a material action, not just words," one source said.

Earlier, US Treasury Secretary Janet Yellen said that she was working with banking regulators to respond after SVB became the largest bank to fail since the 2008 financial crisis.

Follow Emirates 24|7 on Google News.