US Treasury Secretary Rules Out Government Bailout of Silicon Valley Bank

U.S. Treasury Secretary Janet Yellen has ruled retired a authorities bailout of the collapsed Silicon Valley Bank (SVB), which was unopen down by regulators connected Friday. Yellen explained that the reforms enactment successful spot aft the 2008 fiscal situation were aimed astatine preventing the request for authorities bailouts.

Government Not Considering a Bailout for SVB, Says Yellen

U.S. Treasury Secretary Janet Yellen stated successful an interrogation connected CBS News, aired Sunday, that the authorities is not considering a bailout for the collapsed Silicon Valley Bank (SVB). The slope was shut down by regulators connected Friday and enactment into receivership by the Federal Deposit Insurance Corporation (FDIC).

Yellen was asked whether the U.S. authorities needs to “intervene and instrumentality exigency measures due to the fact that of SVB failure.” The treasury caput replied: “America’s system relies connected a harmless and dependable banking strategy that tin supply for the recognition needs of our households and businesses. So whenever a bank, particularly 1 similar Silicon Valley Bank with billions of dollars successful deposits fails, it’s intelligibly a concern.” She continued:

I’ve been moving each play with our banking regulators to plan due policies to code this situation.

Yellen explained that successful the aftermath of the 2008 fiscal crisis, “unique controls” were enactment successful spot to heighten superior and liquidity supervision, and they were tested during the aboriginal days of the Covid-19 pandemic. The strategy “proved its resilience truthful Americans tin person assurance successful the information and soundness of our banking system,” she claimed.

Responding to a question astir whether she has “ruled out” a authorities bailout of Silicon Valley Bank, the treasury caput detailed:

Let maine beryllium wide that during the fiscal crisis, determination were investors and owners of systemic ample banks that were bailed out, and we’re surely not looking. And the reforms that person been enactment successful spot means that we’re not going to bash that again.

While noting that she cannot supply further details connected the SVB concern astatine this time, Yellen insisted: “The American banking strategy is truly harmless and well-capitalized. It’s resilient.”

Yellen acknowledged that the authorities is “well alert that galore startup firms person deposits and task superior firms person deposits astatine this slope that person been affected by its failure,” emphasizing that “this is thing we’re moving to effort to resolve.”

Following the illness of Silicon Valley Bank, billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, warned of “vast and profound” consequences of the U.S. authorities allowing the slope to neglect without protecting each depositors. He besides warned of imaginable bank runs starting connected Monday. Meanwhile, Rich Dad Poor Dad writer Robert Kiyosaki has cautioned that different slope is set to crash.

What bash you deliberation astir the statements by U.S. Treasury Secretary Janet Yellen? And, bash you deliberation the authorities should bail retired SVB? Let america cognize successful the comments conception below.

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