When that news hit, depositors rushed to pull funds from the bank, making it functionally insolvent. Then over the weekend, federal authorities shut down Signature Bank.

On Sunday, the FDIC created "bridge banks" to handle both insured and uninsured customer deposits. Banking regulators assured depositors that they would have full access to all of their funds.

Meanwhile, the Federal Reserve announced a loan program that will allow other banks to easily access capital "to help assure banks have the ability to meet the needs of all their depositors."

The Bank Term Funding Program (BTFP) will offer loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging US Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. Banks will be able to borrow against their assets "at par" (face value).

According to a Federal Reserve statement, "the BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress."

The US Treasury will provide $25 billion in credit protection to the Fed from the Exchange Stabilization Fund.

This will ostensibly help banks avoid the situation that brought down Silicon Valley Bank.