Current:Home > Contact-usJanet Yellen says the federal government won't bail out Silicon Valley Bank-LoTradeCoin
Janet Yellen says the federal government won't bail out Silicon Valley Bank
View Date:2024-12-23 16:13:54
Treasury Secretary Janet Yellen says the U.S. government won't bail out Silicon Valley Bank as it did with other financial institutions during the 2008 financial crisis, but she noted that regulators are working to ensure people and businesses with money in the failed bank would be made whole.
"The reforms that have been put in place means that we're not going to do that again," Yellen said when asked about a bailout during a Sunday appearance on CBS's Face the Nation.
"But we are concerned about depositors and are focused on trying to meet their needs," she added.
The fate of Silicon Valley Bank, or SVB, and its customers had been up in the air over the weekend, days after federal regulators took control of the institution following a "run" on the bank by depositors.
Customers had been flooding the bank with requests to withdraw their money, and earlier last week SVB said it had to sell bonds at a steep loss in order to meet those requests. That announcement worsened the panic over SVB's financial situation and led to even more withdrawal attempts until regulators stepped in.
The collapse of SVB marks one of the largest failures of an American bank since the 2008 global financial crisis.
SVB had carved out a niche in the banking sector by lending to tech startups, but the recent financial problems facing the tech industry put a strain on the bank, and caused its stock price to tank.
Yellen said that, despite the collapse of SVB, she believes the overall American banking system "is really safe and well-capitalized" and "resilient."
The Federal Deposit Insurance Corporation said on Friday that all insured depositors would have full access to their insured funds no later than Monday morning. The agency also said it would pay uninsured depositors an "advance dividend" in the next week, and that depositors would be sent a "receivership certificate for the remaining amount of their uninsured funds."
An independent federal agency, the FDIC doesn't use taxpayer money to insure deposits, but rather is funded through premiums paid by member banks and savings associations.
Regulators in the United Kingdom were also working on a plan to ensure that customers of SVB's UK branch were paid.
The bank's collapse has left tech companies and other SVB customers in limbo, and it's even caused headaches for others not directly connected to the bank, such as Etsy sellers who were told they may see delays in receiving payments because the online marketplace uses SVB to make some payments.
veryGood! (4)
Related
- Megan Fox Is Pregnant, Expecting Baby With Machine Gun Kelly
- High Oil Subsidies Ensure Profit for Nearly Half New U.S. Investments, Study Shows
- How do you get equal health care for all? A huge new database holds clues
- Mike Ivie, former MLB No. 1 overall draft pick, dies at 70
- Vogue Model Dynus Saxon Charged With Murder After Stabbing Attack
- Lupita Nyong’o Addresses Rumors of Past Romance With Janelle Monáe
- From Antarctica to the Oceans, Climate Change Damage Is About to Get a Lot Worse, IPCC Warns
- Coal Boss Takes Climate Change Denial to the Extreme
- Queen Bey and Yale: The Ivy League university is set to offer a course on Beyoncé and her legacy
- The Taliban again bans Afghan women aid workers. Here's how the U.N. responded
Ranking
- US Election Darkens the Door of COP29 as It Opens in Azerbaijan
- Arctic National Wildlife Refuge Targeted for Drilling in Senate Budget Plan
- American Idol Singer Iam Tongi Reacts to Crazy Season 21 Win
- How 90 Big Companies Helped Fuel Climate Change: Study Breaks It Down
- Georgia's humbling loss to Mississippi leads college football winners and losers for Week 11
- Energy Forecast Sees Global Emissions Growing, Thwarting Paris Climate Accord
- Planning a trip? Here's how to avoid fake airline ticket scams
- Montana House votes to formally punish transgender lawmaker, Rep. Zooey Zephyr
Recommendation
-
Bluesky has added 1 million users since the US election as people seek alternatives to X
-
With Odds Stacked, Tiny Solar Manufacturer Looks to Create ‘American Success Story’
-
Climate Change Threatens the World’s Fisheries, Food Billions of People Rely On
-
Fishing crew denied $3.5 million prize after their 619-pound marlin is bitten by a shark
-
Is Veterans Day a federal holiday? Here's what to know for November 11
-
San Francisco, Oakland Sue Oil Giants Over Climate Change
-
Kourtney Kardashian Ends Her Blonde Era: See Her New Hair Transformation
-
Major Tar Sands Oil Pipeline Cancelled, Dealing Blow to Canada’s Export Hopes