WILMINGTON, Del. (AP) — U.S. Treasury Secretary Janet Yellen said Sunday the federal government won’t be bailing out Silicon Valley Bank, but is helping money-conscious depositors.
The Federal Deposit Insurance Corporation guarantees up to $250,000 per account, but many businesses and high-net-worth individuals who used this bank — known for serving young tech startups and private equity — had much more than that. There are concerns that many employees are not receiving their salaries.
Yellen, in an interview with CBS’ “Face the Nation” program, didn’t give many details about the next steps the government will take in this regard. But he pointed out that the situation is very different from the financial crisis of 15 years ago, when the government had to save many white people by injecting them with cash.
“We won’t do that anymore,” Yellen said, “but we care about depositors and are focused on meeting their needs.”
Despite the jitters on Wall Street, Yellen tried to calm public opinion by saying that the collapse of Silicon Valley Bank will not have a domino effect.
“The US banking system is really safe and well capitalized, it’s resilient,” the official said.
Silicon Valley Bank is the 16th largest bank in the United States. It was the second-largest banking meltdown in U.S. history after Washington Mutual in 2008. The bank primarily served technology employees and early-stage investment companies, including some of the largest technology companies. better known.