- The situation is different from the financial crisis 15 years ago
- Regulators are expected to consider acquisition of SVB by another institution
United States Secretary of the Treasury Janet Yellen reportedthat the government will not try to save the troubled bank Silicon Valley Bank, but despite this, will help investors to return their funds.
In an interview with the program “Face the Nation”, the woman spoke about the plans of the government, but there was very little information. She stressed that the situation is significantly different from the financial crisis 15 years ago, which led to bank bailouts to protect the industry.
“We are not going to do it again. But we care about depositors and try to meet their needs.” Yellen said
The Treasury Secretary reassured the Americans and said that there would be no domino effect after the collapse of Silicon Valley Bank. She added that the US banking system is indeed safe and well capitalized.
Silicon Valley Bank’s problems began after its clients began withdrawing their deposits. The bank had to sell bonds at a loss and this led to the largest bankruptcy of a US financial institution since the height of the financial crisis.
Janet Yellen said she is cooperating with regulators:
“I have been working with banking regulators all weekend to develop appropriate policies to address this situation. I am unable to provide more details at this time.”
The woman expects regulators to consider “the wide range of options available,” including the acquisition of Silicon Valley Bank by another institution. However, so far no buyer has appeared.