Rep. Josh Gottheimer (D-NJ) is laying out his demands for how the Silicon Valley Bank collapse should be dealt with as government authorities scramble to curtail financial contagion.

Underscoring the economic dangers of the meltdown, Gottheimer wants the Federal Deposit Insurance Corporation, Federal Reserve, and Treasury Department, to work to find a buyer for SVB, assist uninsured depositors, and sore up liquidity in Fed member banks.

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"We are writing to express our deep concern over the sudden collapse of Silicon Valley Bank (SVB) and the contagion risk this failure poses to small, medium, and regional banks across the country," Gottheimer wrote in a draft letter circulated amongst colleagues.

On Friday, SVB collapsed after scaring investors when it revealed on Wednesday that it sold off a bevy of securities at a loss. Federal regulators have taken over and moved to address the mounting crisis.

Gottheimer noted that SVB was faced with a difficult economic environment and acknowledged that SVB's massive stockpile of treasuries appeared to contribute to its turmoil.

"At first glance, it appears that SVB met their capital requirements and had a balance sheet with adequate ratios. That said, SVB seemingly failed to recognize and respond to the shifting economic environment, and, although intended for cash management, held an uncommonly large percentage of long-term U.S. government securities on their balance sheet," he said.

Treasury Secretary Janet Yellen appeared to rule out a federal bail-out for SVB, which is the 16th largest federally insured bank in the country. Gottheimer echoed other policymakers in contending that an acquisition of SVB would be ideal, that shareholders should not receive assistance, and that depositors should get their money back.

"First, as we are sure you are doing, the FDIC should prioritize finding a buyer for SVB that has the resources to provide a seamless transition for the bank's depositors and borrowers, with the hope of making the depositors whole," he said.

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The FDIC is poised to provide money for deposits under $250,000 and is reportedly working on a solution for deposits above that threshold as well. Given SVB's focus on tech startups, the bulk of its deposits exceeded $250,000. Gottheimer said the Treasury and the Fed should encourage banks to "extend temporary lines of credit to the bank's depositors."

Additionally, Gottheimer argued that increased repurchase agreements by the Fed could help "head off contagion and assure depositors that their banks are healthy." Gottheimer sits on the United States House Committee on Financial Services and is a co-chair of the bipartisan Problem Solvers Caucus.