No Fed Bailout For SVB, Yellen Vows

Treasury Secretary Janet Yellen said that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money, Chris Megerian reported for the Associated Press (AP).

Photo Insert: The Treasury Secretary emphasized that the SVB situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.

The Federal Deposit Insurance Corp. (FDIC) insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account.

There are fears that some workers across the country won’t receive their paychecks.

Yellen, in an interview with CBS’ “Face the Nation,” provided few details on the government’s next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.

“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.”

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