Customers of Silicon Valley Bank will now have complete access to their savings, according to the Biden administration. This remarkable decision by federal officials to support billions of dollars in uninsured money comes amid concerns that the bank's failure might trigger even more panic.

In the aftermath of Silicon Valley Bank's abrupt implosion, federal authorities said on Sunday that they were taking the necessary emergency measures to stop contagion at other local and small banks.

The Associated Press reported that the British Government and the Bank of England in the United Kingdom revealed early on Monday that they had helped smooth the sale of Silicon Valley Bank UK to HSBC, the largest bank in Europe. The action guaranteed the security of deposits worth around $8.1 billion. For the course of the weekend, British officials searched for a buyer for the California-based bank's UK business. The second-largest bank failure in history was caused by its demise.

According to sources, the U.S. rescue plan entails drawing from a sizable pool of government insurance funds that are financed by banks rather than using public money.

Customers of Silicon Valley Bank will have complete access to their funds as of Monday, according to the regulators.

"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system," federal officials said in the statement on Sunday. "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."

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Swiss authorities agreed to change the country's regulations to bypass the shareholder vote and announced the deal over the weekend.

UBS Group agreed to buy ailing rival Credit Suisse for $3.25 billion on March 19 as part of an "emergency order" to prevent instability in financial markets .

UBS has agreed to buy Credit Suisse for more than $2 billion, the Financial Times reported earlier, citing an insider. However, UBS's latest statement revealed that the total consideration for the deal is about 3 billion CHF, or $3.25 billion. That's still a significant bargain compared to Credit Suisse's March 17 market cap of 7.5 billion francs, or about $8 billion .

“This acquisition is attractive to UBS shareholders. But let's be clear about Credit Suisse. It is a "lifebouy". We have structured a transaction that preserves the remaining value in the business while limiting our negative exposure”

said Colm Kelleher, President of UBS.

To seal the deal, Swiss authorities agreed to amend the country's regulations to bypass a shareholder vote and announced the deal over the weekend before the market opened.

As part of the deal, the Swiss National Bank also committed to providing UBS with more than $100 billion in liquidity, according to reports.

The discussions were jointly initiated by the Swiss Federal Ministry of Finance, the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank, and the acquisition is fully supported, UBS said in a statement.

UBS was not the only solution

Swiss authorities were considering alternatives to Credit Suisse in case the deal with UBS falls through over the weekend, including nationalizing the bank in whole or in part as an emergency solution.

Credit Suisse's rescue plan would also include losses for bondholders, raising concerns among European regulators. According to them, this would undermine investor confidence in the European financial sector.

UBS and Credit Suisse have been in talks with regulators since March 15, after Credit Suisse's largest shareholder, the National Bank of Saudi Arabia, said it would not increase its investment in the Swiss bank due to regulations . The comments added to concerns about the bank's ability to generate profits, sparking fears about a possible shareholder financing.

Credit Suisse was founded in 1856 to finance the expansion of the Swiss railways. It was considered the second largest bank in the country.

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