Biden's Treasury Secretary Makes It Clear; We Won't Be Bailing Out Silicon Valley Bank

Treasury Secretary Janet Yellen tried to allay concerns that the worst-case scenarios may come true despite business titans warning an economic apocalypse following the collapse of Silicon Valley Bank if the U.S. government does not step in.

In an interview with Margaret Brennan on Face the Nation Sunday, Yellen discussed Silicon Valley Bank's collapse and aimed to boost trust in American banks.


According to Yellen, "the American banking system is truly secure and well-capitalized. It is tenacious. During the 2008 financial crisis, improved capital and liquidity oversight was placed in place. This control was tested in the early stages of the pandemic and proven to be resilient, giving Americans confidence in the stability of our banking system.

Yet, Yellen cited those new regulations as the main justification for why the American government does not intend to save the Silicon Valley bank.

Let me be clear: During the financial crisis, investors and owners of very major banks were bailed out, but thanks to the changes implemented, she added, we won't be doing that again.

After a Friday bank run, Silicon Valley failed. There are worries that the bankruptcy of Silicon Valley could lead to a bank run in nearby areas. Before the stock exchange reopened, Brennan questioned if the government would take any action.

Do you anticipate an agreement or other event that can calm the markets before Asian markets open tonight and American markets start tomorrow? Brennan questioned.

Yellen responded, "We certainly are working to address the matter in a timely manner.

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