The United States Treasury Secretary, Janet Yellen stated on Sunday that the United States government had no plans to bail out SVB but was “working closely with banking regulators” to help the bank.
Speaking on a Sunday show that aired on US TV station CBS, Yellen the Treasury secretary attempted to assure customers of the bank that regulators were working out a solution for everyone affected by the collapsed bank. However, she stopped short of promising any bailout of the bank.
- “Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out . . . and the reforms that have been put in place means we are not going to do that again.”
- “But we are concerned about depositors, and we’re focused on trying to meet their needs.”
Janet Yellen’s comments will likely perturb uninsured depositors of the bank who have money more than $250k with the failed bank. Without a bailout, uninsured depositors will have to hope that a sale of the bank to another stronger financial institution might help secure their deposits.
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