Silicon Valley Bank has collapsed, causing concern for depositors and sparking worries that other financial firms may be at risk.
The Federal Deposit Insurance Corporation (FDIC) said that all depositors of Silicon Valley Bank would have access to their money.
However, Federal Reserve announced an emergency lending program to help banks that need it most, and Signature Bank has been shut down by New York bank regulators, adding to the three bank failures in a week.
Treasury Secretary, Janet Yellen, said the government wanted to avoid financial "contagion" from the implosion of Silicon Valley Bank but ruled out a bailout of the institution.
US regulators are working to contain the consequences of the collapse of Silicon Valley Bank, which raised concerns that other financial firms could face similar problems as interest rates rise.
Federal regulators announced that the government would ensure that all depositors of Silicon Valley Bank would have access to all their money starting immediately.
Many small businesses are depending on funds held at Silicon Valley Bank, and regulators are working to address their concerns.
The Federal Reserve announced an emergency lending program to help banks that need it.
In addition, Signature Bank has been shut down by regulators due to financial failures.
Treasury Secretary Janet Yellen assured the public that the American banking system was "safe and well capitalized.
" She did not disclose what regulators might do to protect depositors, including those whose funds were frozen at the bank, but she emphasized that the government would not bail out Silicon Valley Bank.
Yellen emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.
Yellen said regulators were working around the clock this weekend to deal with the fallout from the firm's collapse, addressing concerns of rising interest rates that put pressure on the banking sector.
Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank had more than that amount in their account.
The collapse of the Silicon Valley Bank is the second-largest failure in history, causing government regulators to act promptly.
While Yellen has assured the public that the banking system is safe, many are concerned that other banks may face similar problems given the previous string of bank failures.