US Treasury Secretary Janet Yellen said on Sunday that the US government was working closely with banking regulators to help depositors at Silicon Valley Bank, but rejected the idea of a bailout.
US Treasury Secretary Janet Yellen Rejects Possibility of Recovery Plan for Silicon Valley Bank
Speaking to CBS on Sunday, the treasury secretary tried to reassure US clients of the failing tech-focused lender that policies were being discussed to stave off the effects of the crash this week. The Federal Deposit Insurance Corporation (FDIC) took over control of the bank Friday morning.
Yellen said:
“There were investors and owners of systemic big banks that were rescued during the financial crisis. And the reforms we’ve put in place mean we won’t be doing it again.
But we are concerned about depositors and are focused on meeting their needs.”
USDC distributor cryptocurrency His company, Circle, said in a recent statement that it hopes the funds will be fully recovered, but that if this possibility does not materialize, they will close the gap from their own resources.
The sudden collapse of the SVB stunned the venture capital and start-up community, many of whom face uncertainty over the fate of their bank accounts and business activities.
In 2021, when the investment boom in private technology companies reached its peak, the flow of money to the SVB was intense. Companies that received increasingly larger investments from venture funds were pouring cash into the bank, whose deposits rose from $102 billion to $189 billion and were floating in “excess liquidity.”
*Not investment advice.
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