US Discusses Fund to Backstop Deposits If More Banks Fail (1)

The Federal Deposit Insurance Corp. and the Federal Reserve are weighing creating a fund that would allow regulators to backstop more deposits at banks that run into trouble following Silicon Valley Bank’s collapse.

Regulators discussed the new special vehicle in conversations with banking executives, according to people familiar with the matter. The hope is that setting up such a vehicle would reassure depositors and help contain any panic, said the people. They asked not to be identified because the talks weren’t public.

Read more: FDIC Races to Return Some Uninsured SVB Deposits Monday

A representative for the Federal Reserve declined ...