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US Treasury's Yellen Says Passed Up Her Weekend Due to SVB Bankruptcy

© AP Photo / Susan WalshFederal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington, Tuesday, Feb. 24, 2015
Federal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington, Tuesday, Feb. 24, 2015 - Sputnik International, 1920, 12.03.2023
MOSCOW (Sputnik) - US Treasury Secretary Janet Yellen said on Sunday she was working through the weekend to resolve the aftermath of the Silicon Valley Bank (SVB) collapse.
"I've been working all weekend with our banking regulators to design appropriate policies to address this situation," Yellen said in an interview with CBS's "Face the Nation" show.
She also said that the US authorities currently seek to prevent the domino effect that might hit other regional banks because of SVB's failure.
Dollar pyramid - Sputnik International, 1920, 12.03.2023
Second Largest Bank Collapse in US History: What Happened to SVB, and What Comes Next?
"America's economy relies on a safe and sound banking system that can provide for the credit needs of our households and businesses. So whenever a bank, especially one, like Silicon Valley Bank with billions of dollars in deposits fails, it's clearly a concern," Yellen said.
The official added that the federal government will not provide a bailout for SVB's investors, as it did during the 2007–2008 financial crisis, but is focused on trying to meet the needs of SVB's depositors instead.
The Federal Deposit Insurance Corporation (FDIC) said that the California Department of Financial Protection and Innovation closed SVB on Friday. It became the largest bank to fail in the US after the 2007–2008 financial crisis.
To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB), to which all insured deposits of SVB were transferred.
On Friday, Yellen convened the leaders of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to discuss developments concerning SVB.
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