U.S. Treasury Secretary Janet Yellen said the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money. The collapse of SVB was the second biggest bank failure in U.S. history.
The bank served mostly technology workers and venture capital-backed companies, including some of the industry’s best-known brands.
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.Yellen said she expected regulators to consider “a wide range of available options,” including the acquisition of Silicon Valley Bank by another institution. So far, however, no buyer has stepped forward.
“I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation," Yellen said."I can’t really provide further details at this time.”
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