FDIC Returned $40 Billion in US Treasury Funds, Reversing Withdrawal After SVB Takeover
WASHINGTON—The Federal Deposit Insurance Corp. (FDIC) deposited $40 billion back into the U.S. Treasury General Account on Tuesday, reversing a $40 billion withdrawal on Friday as the regulator took control of the failed Silicon Valley Bank, Treasury financial data released on Wednesday showed.
A Treasury spokesperson referred questions about the fund transfers to the FDIC, which declined comment.
On Tuesday, before the restoration of the funds was disclosed in the latest Daily Treasury Statement, the Treasury said that the $40 billion withdrawal would not affect estimates for when it would no longer be able to pay all U.S. government bills without a debt ceiling increase….