The U.S. Government moved quickly late Sunday to avert a wider crisis in the global financial system in the wake of the spectacular collapse of Silicon Valley Bank (SIVB). Regulators said that New York-based Signature Bank (SBNY), one of the main banks for cryptocurrencies, had also failed and it too was being taken over. The closure comes just two days after authorities shuttered California’s Silicon Valley Bank, in a stunning and swift collapse that rattled markets and left investors, especially startups, unable to access billions of dollars in deposits.

The Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank and Signature customers will have access to their funds on Monday and announced steps designed to protect the bank’s customers and prevent more bank runs. The Fed is not purchasing securities at banks, only lending against their book value. Officials stressed that no bank is being bailed out. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement.

In a separate news release the Fed said it's carefully monitoring developments in financial markets "The Federal Reserve is prepared to address any liquidity pressures that may arise."

Key video highlights

0:18 Second bank collapse

0:30 Depositors to be made whole

0:50 Three things to watch