US Treasury Secretary Janet Yellen has ruled out a bailout from the federal government for bankrupt Silicon Valley Bank. Speaking on CBS News, she said that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, but they are not going to do that again.
The Treasury secretary said, they are concerned about depositors and are focused on trying to meet their needs.
The bank’s failure has also raised concern about a repeat of the 2008 financial crisis, but Yellen sought to reassure Americans that the collapse is an isolated incident. She emphasized that the American banking system is really safe, well-capitalized and resilient.
California regulators shut down Silicon Valley Bank on Friday after depositors rushed to withdraw money last week amid concerns about its balance sheet.
The Federal Deposit Insurance Corporation (FDIC) was appointed receiver, and regulators are working to find a buyer for the institution, which ranked as the 16th-largest bank in the US before its failure. (AIR NEWS)