Recently we’re witnessing the continuing collapse of Silicon Valley Bank (SVB), one of many greatest in historical past, second solely to the demise of Washington Mutual Bank through the Great Financial Crisis in 2008.
During the uncertainties surrounding the SVBs financial institution run, U.S Treasury Secretary Janet Yellen got here ahead saying that the federal government wouldn’t bail out SVB, in an interview with CBS News.
When the interviewer requested Yellen about any doable authorities intervention, the Treasury Secretary acknowledged: “Well let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking.”
“And the reforms that have been put in place mean that we’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs,” Yellen added.
Yellen acknowledged that quite a few startup companies and enterprise capital companies have deposits at SVB which have been harmed by the financial institution’s failure, and the federal government is working to settle the issue.
Meanwhile, Yellen accepted measures to permit the Federal Deposit Insurance Corporation (FDIC) to complete its resolutions of Silicon Valley Bank and fallen crypto-friendly Signature Bank in a approach that totally protects all depositors, each insured and uninsured, after receiving a advice from the boards of the FDIC and the Federal Reserve.
The FDIC declared that it’s going to present depositors with as much as $250,000 in protection, and it’d be capable of begin making funds beginning as we speak.
Yellen famous the FDIC is contemplating a variety of accessible choices, together with acquisitions to take care of SVB failure.
The abrupt demise of Silicon Valley Bank shocked the startup neighborhood as quite a few companies scurry to seek out strategies to outlive after the financial institution was taken over by authorities.
Compiled by Coinbold