The Treasury Secretary, Janet Yellen, has indicated this Sunday that the federal government will not rescue Silicon Valley Bank (SVB Financial), but is working to help depositors who are concerned about their money, as expressed on the TV program ‘ Face the Nation’ on CBS.
The Federal Deposit Insurance Corporation (CFSD) of liquidity for some companies that used the entity for their treasury.
“The US banking system is really safe and well capitalized. It’s resilient”
It’s different from 2008
There are fears that some workers across the country will not be paid starting next week due to thousands of business clients, especially tech startups. “Any time a bank, especially one like Silicon Valley Bank with billions of dollars in deposits, fails…it’s clearly a concern. From the point of view of depositors, many of whom may be small businesses, it depends of access to their funds to be able to pay the bills that tens of thousands of people have and use,” he said.
Yellen did not provide details on the government’s next steps, but stressed that the situation was very different from the financial crisis nearly 15 years ago, which led to bank bailouts to protect the industry. “Let me just say that we want to make sure that problems that exist in one bank don’t spread to others that are healthy. And the goal is always supervision and regulation is to make sure that contagion can’t happen. During the financial crisis of 200 , there were investors and owners of large systemic banks that were bailed out, and we’re certainly not looking to do that again,” he explained.
“But we are concerned about depositors and we are focused on trying to meet their needs,” he added, “to resolve the situation in the best possible way.” With Wall Street in a state of alarm since Friday, Yellen will try to reassure Americans that there won’t be a domino effect after the collapse of Silicon Valley Bank.
“The US banking system is really safe and well capitalized. It is resilient,” added the head of financial stability for the Joe Biden government. of the US after the collapse of Washington Mutual in 2008 and with the exception of the investment bank Lehman or the insurer AIG.
“We have heard from those depositors and other concerned people this weekend. Let me say that I have been working all weekend with our bank regulators to design appropriate policies to address this situation. Really, at the moment, I cannot deport m,” explained the person in charge. of the Treasury.
