United State Treasury Secretary, Janet Yellen on Sunday said that the federal government would not bail out collapsed Silicon Valley Bank, but are working to help concerned depositors get their money.
The US Federal Deposit Insurance Corporation 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.
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 of almost 15 years ago, which led to bank bailouts to protect the industry.
“We’re not going to do that again,” she said.
With Wall Street currently rattled, Yellen tried to reassure Americans that there will be no domino effect after the collapse of Silicon Valley Bank.
Silicon Valley Bank is the US 16th-largest bank and It was the second biggest bank failure in US history after the collapse of Washington Mutual in 2008.
The bank served mostly technology workers and venture capital-backed companies, including some of the industry’s best-known brands.
Writing by Tersoo Nicholas; Editing by Adeniyi Bakare