Banking regulators devised a plan on Sunday to backstop depositors with funds at Silicon Valley Bank and Signature Bank ($SBNY@US), giving them full access to their deposits. The Treasury Department designated the two banks as systemic risks, giving it authority to unwind both institutions in a way that it said “fully protects all depositors.” The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits. The Federal Reserve also said it is creating a new Bank Term Funding Program to protect institutions impacted by the market instability of the SVB failure.