United States Treasury secretary Janet Yellen says the federal government will not bail out the Silicon Valley Bank, but it is working to help depositors concerned about their money.
abc.net.au/news/yellen-no-federal-bailout-for-collapsed-silicon-valley-bank/102087244US Treasury secretary Janet Yellen says the federal government will not bail out Silicon Valley Bank, but it is working to help depositors who are concerned about their money.Janet Yellen has provided few details about the US government's next steps, but says there will not be a bailout
"We're not going to do that again," she said. "But we are concerned about depositors, and we're focused on trying to meet their needs." Silicon Valley Bank began its slide into insolvency when its customers, largely technology companies that needed cash as they struggled to get financing, started withdrawing their deposits.
Sheila Bair — who was the FDIC chair during the 2008 financial crisis, recalled that, with almost all the bank failures during that time, "we sold a failed bank to a healthy bank. And, usually, the healthy acquirer would also cover the uninsured because they wanted the franchise value of those large depositors so, optimally, that's the best outcome".
"I've been working all weekend with our banking regulators to design appropriate policies to address this situation," Ms Yellen said. "I can't really provide further details at this time." "I'm more optimistic this morning than I was yesterday afternoon at this time," he said. "But, again, we will see how this plays out during the rest of the day."Senator Mark Warner expresses concerns that the bank's collapse may cause further consolidation.
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