NEW YORK (AP) — Can Washington steps in to save the failed depositors Silicon Valley Bank? What political possibilities are there?

That was one of the growing questions in Washington Sunday as policymakers tried to figure out whether the U.S. government — and its taxpayers — should bail out a failed bank that largely served Silicon ValleyWith all of its power and wealth.

Prominent Silicon Valley Personalities and executives are hitting the huge red “PANIC” Click the button to indicate that Washington will not rescue you Silicon Valley bank’s depositors, more bank runs are likely.

“The gov’t has about 48 hours to fix a soon-to-be-irreversible mistake,” Bill Ackman is a well-known Wall Street investor and wrote a tweet. Ackman said that he has no deposits. Silicon Valley It is possible to bank but invest in companies that offer it.

Another Silicon Valley Even more outrageous personalities are out there.

“On Monday 100,000 Americans will be lined up at their regional bank demanding their money — most will not get it,” Jason Calacanis shared his thoughts on Twitter. Calacanis is a tech investor who has been in close contact with Elon Musk since he recently overtook the social media site.

Silicon Valley Bank failed on FridayAs fearful depositors took billions out of the bank in just hours, U.S. banks regulators had to immediately close it in order to prevent a bank run. It’s the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.

Silicon Valley Bank He was an unusual creature in the world of banking. The The 16th largest bank in the nation was primarily used by technology startups, venture capital companies and highly-paid tech workers. This is why the majority of deposits to the bank are there. Silicon Valley The insured limit of $250,000 was exceeded by bank business accounts.

Due to its failure, more than $150 Billion in deposits were placed under receivership. Startups and other businesses could not access the money for quite some time.

Staff at the Federal Deposit Insurance Corporation — the agency that insures bank deposits under $250,000 — have worked through the weekend looking for a potential buyer for the assets of the failed bank. There have been multiple bidders for assets, but as of Sunday morning, the bank’s corpse remained in the custody of the U.S. government.

The panic of Silicon Valley, there are no signs that the bank’s failure could lead to a 2008-like crisis. The nation’s banking system is healthy, holds more capital than it has ever held in its history, and has undergone multiple stress tests that shows the overall system could withstand even a substantial economic recession.

It appears, furthermore, that Silicon Valley Bank’s failure appears to be a unique situation where the bank’s executives made poor business decisions by buying bonds just as the Federal Reserve was about to raise interest rates, and the bank was singularly exposed to one particular industry that has seen a severe contraction in the past year.

Investors are looking for banks that can help them in such situations. The Stock of First Republic Bank fell nearly one-third in just two days. This bank serves technology and wealthy customers. PacWest Bank in California, which caters to small- to medium-sized companies, fell 38% Friday.

It was not unusual for a bank to fail this large, but it did raise concerns. Janet Yellen (Treasury Secretary) and the White House have been “watching closely” The developments. California Governor has spoken to President BidenCongress now has a number of bills that would increase FDIC’s insurance limit in order to temporarily protect depositors.

“I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation,” Yellen spoke on “Face the Nation” Sunday

Yellen however made it abundantly clear that if Silicon Valley It is wrong to expect Washington to rescue it. If Washington is to rescue it, it will be wrongly asked. bailout was on the table, Yellen said, “We’re not going to do that again.”

“But we are concerned about depositors, and we’re focused on trying to meet their needs,” She added.

Sen. Mark Warner, D-Virginia, said on ABC’s “This Week” That would make it a “moral hazard” You could bail you out Silicon Valley’s uninsured depositors. Moral hazard was a term used often during the 2008 financial crisis for why Washington shouldn’t have bailed out Lehman Brothers.

The Many businesses that kept their cash in the bank are part of the growing panic among tech industry insiders. Silicon Valley In the days and weeks ahead, banks will not have the ability to pay their payrolls or cover office expenses because uninsured deposits won’t be released. FDIC stated it would pay unspecified amounts. “advanced dividend” — i.e. a portion of the uninsured deposits — to depositors this week and said more advances will be paid as assets are sold.

The Ideal situation: The FDIC locates a single buyer Silicon Valley Bank’s assets, or maybe two or three buyers. In the following weeks, it is possible that the bank will also be sold in parts. The FDIC will sell assets so that insured depositors have full access to their deposits. Any uninsured deposits, however, will also be accessible on Monday.

Todd Phillips, a consultant and former attorney at the FDIC, said he expects that uninsured depositors will likely get back 85% to 90% of their deposits if the sale of the bank’s assets is done in an orderly manner. He said it was never the intention of Congress to protect business accounts with deposit insurance — that the theory was businesses should be doing their due diligence on banks when storing their cash.

Phillips stated that Congress would need to pass legislation in order to protect bank accounts so they could be used by businesses. It’s unclear whether the banking industry would support higher insurance limits as well, since FDIC insurance is paid for by the banks through assessments and higher limits would require higher assessments.

Philips stated that Washington should communicate to the world that banks are safe, and that depositors who have not been insured will receive most of their money back.

“Folks in Washington need to be forcefully countering the narrative on Twitter coming from Silicon Valley. If people realize they are going to get 80% to 90% of your deposits back, but it will take awhile, it will do a lot to stop a panic,” He stated.