Federal regulators responded quickly to avert a major financial crisis on Friday after Silicon Valley Bank abruptly shut down. The Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation jointly declared that they will take “decisive actions” to secure the US banking system.

The group attached the caveat that taxpayers will not bear any costs related to losses stemming from the illegal seizure of SVB. The Federal Reserve created a new lending facility to endure the nation’s banks have access to the capital needed to weather the storm. The facility provides loans up to one year with collateral such as US treasuries, agency debt and mortgage-backed securities.

In a matter of hours, US officials weighed what would’ve been an extraordinary intervention which protected all uninsured deposits at SVB while averting a financial meltdown. All the while, they kept in mind the option to sell SVB to a healthy institution