US Treasury Secretary Janet Yellen stated on Sunday that the federal government won’t bail out Silicon Valley Bank, but it is helping money-conscious depositors.
The Federal Deposit Insurance Corporation guarantees up to 250 thousand dollars per account, But many of the companies and wealthy individuals who used that bank — known for serving young tech startups and venture capital — had much more than that. There are fears that many employees will not receive their salaries.
Yellen, in an interview with CBS’s “Face the Nation” program, did not offer many details about the next steps the government will take in this regard. But he stressed that the situation is very different from the financial crisis of 15 years ago, when the government had to save many whites by injecting them with liquidity.
“We won’t do that again,” Yellen said, “but we care about depositors, and we’re focused on trying to meet their needs.”
Despite the jitters on Wall Street, Yellen tried to calm the public by saying that the collapse of Silicon Valley Bank will not have a domino effect. “The US banking system really is safe and well capitalized, it’s resilient,” the official emphasized.
Silicon Valley Bank is the 16th largest bank in the United States. Is he second largest banking collapse in American history after Washington Mutual in 2008. The bank primarily served tech employees and startup investment companies, including some of the best-known tech companies.
JM
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