U.S. Treasury Secretary Janet Yellen has ruled out a government bailout of the collapsed Silicon Valley Bank (SVB), which was shut down by regulators on Friday. Yellen explained that the reforms put in place after the 2008 financial crisis were aimed at preventing the need for government bailouts.
Government Not Considering a Bailout for SVB, Says Yellen
U.S. Treasury Secretary Janet Yellen stated in an interview on CBS News, aired Sunday, that the government is not considering a bailout for the collapsed Silicon Valley Bank (SVB). The bank was shut down by regulators on Friday and put into receivership by the Federal Deposit Insurance Corporation (FDIC).
Yellen was asked whether the U.S. government needs to “intervene and take emergency measures because of SVB failure.” The treasury secretary replied: “America’s economy relies on a safe and sound banking system that can provide for the credit needs of our households and businesses. So whenever a bank, especially one like Silicon Valley Bank with billions of dollars in deposits fails, it’s clearly a concern.” She continued:
I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation.
Yellen explained that in the aftermath…
