As in wars, so in financial and currency matters: Congressional authority and statutes are ignored by U.S. executive actions.
There is no basis in the Federal Deposit Insurance Act, as amended up to Feb. 9, 2023, for this action announced by the Federal Reserve, Treasury and FDIC on March 12:
“After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13…. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole.”
