The federal government won't bail out Silicon Valley Bank, the treasury secretary said, but will work to help depositors who are concerned about their money.
WILMINGTON, Del. — Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.
"We're not going to do that again," she said. "But we are concerned about depositors, and we're focused on trying to meet their needs." Yellen described rising interest rates, which have been increased by the Federal Reserve to combat inflation, as the core problem for Silicon Valley Bank. Many of its assets, such as bonds or mortgage-backed securities, lost market value as rates climbed.
Regulators seized the bank's assets on Friday. Deposits that are insured by the federal government are supposed to be available by Monday morning. "They do have the tools to handle the current situation, they do know the seriousness of this and they are working to try to come forward with some announcement before the markets open," he said."I think that would be the best outcome to move forward and cool the markets and let people understand that we can move forward in the right manner," he said.
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