NATIONAL NEWS

Treasury secretary rules out bailout for Silicon Valley Bank

Mar 12, 2023, 10:36 AM

Treasury Secretary Janet Yellen on Sunday ruled out a federal bailout for Silicon Valley Bank follo...

Treasury Secretary Janet Yellen on Sunday ruled out a federal bailout for Silicon Valley Bank following its spectacular collapse last week. (Al Drago/Bloomberg via Getty Images)

(Al Drago/Bloomberg via Getty Images)

(CNN) — Treasury Secretary Janet Yellen on Sunday ruled out a federal bailout for Silicon Valley Bank following its spectacular collapse last week.

“Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking,” Yellen told CBS News when asked if there will be a bailout. “And the reforms that have been put in place means that we’re not going to do that again.”

Also Sunday, Shalanda Young, the director of the White House Office of Management and Budget, stressed in an interview with CNN’s Kaitlan Collins on “State of the Union” that the US banking system at large was “more resilient” now.

“It has a better foundation than before the [2008] financial crisis. That’s largely due to the reforms put in place,” Young said on “State of the Union.”

Yellen said she’s been hearing from depositors all weekend, many of whom are “small businesses” and employ thousands of people. “I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation,” the Treasury secretary said, declining to provide further details.

SVB collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history.

California regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors.

Despite initial panic on Wall Street over the run on SVB, which caused its shares to crater, analysts said the bank’s collapse is unlikely to set off the kind of domino effect that gripped the banking industry during the financial crisis.

But the collapse has prompted a bailout debate in Washington as lawmakers assess the fallout.

Republican Rep. Nancy Mace of South Carolina told Collins in a separate interview on “State of the Union” that she doesn’t support a bailout “at this time” but cautioned, “It’s still very early.”

“We cannot keep bailing out private companies because there’s no consequences to their actions. People, when they make mistakes or break the law, have to be held accountable in this country,” she said.

While relatively unknown outside Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year, according to the FDIC. It’s the largest lender to fail since Washington Mutual collapsed in 2008.


The-CNN-Wire™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

National News

This image released by A24 shows Kirsten Dunst in a scene from "Civil War." (A24 via AP)...

Jake Coyle, The Associated Press

‘Civil War’ continues box-office campaign at No. 1

“Civil War,” Alex Garland’s ominous American dystopia, remained the top film in theaters in its second week of release, according to studio estimates Sunday.

7 hours ago

FILE - The Lyrid meteor shower is seen over Burg on the Baltic Sea island of Fehmarn off Germany, F...

Christina Larson, The Associated Press

The Lyrid meteor shower peaks this weekend, but it may be hard to see it

The Lyrid meteor shower is underway. But with a nearly full moon in the sky during the peak, it might be tough to see clearly.

7 hours ago

FILE - The Universal Studios Hollywood officially reopens to the public at 25% capacity with COVID-...

Associated Press

15 people injured when tram collides with guardrail at Universal Studios theme park near Los Angeles

More than a dozen people suffered mostly minor injuries when a tram used for tours crashed into a railing at Universal Studios Hollywood near Los Angeles, authorities and the company said.

9 hours ago

Republican Rep. Marjorie Taylor Greene on Sunday said House Speaker Mike Johnson “betrayed” Rep...

Veronica Stracqualursi, CNN

Marjorie Taylor Greene calls on Johnson to resign after foreign aid bills pass

Republican Rep. Marjorie Taylor Greene on Sunday said House Speaker Mike Johnson “betrayed” Republican voters after the House approved new aid to Ukraine, threatening to call a vote for his ouster if he doesn’t resign.

12 hours ago

This photo provided by the Ada County, Idaho, Sheriff’s Office shows Deputy Tobin Bolter. The she...

Associated Press

Suspect in killing of Idaho sheriff’s deputy fatally shot by police, authorities say

An Idaho sheriff's deputy died after being shot by a driver during a traffic stop, and a man believed to be the shooting suspect was later fatally shot by police, authorities said Sunday.

12 hours ago

High school students taking College boards exams in 1964. (Warren K. Leffler, US News & World Repor...

Eva Rothenberg, CNN

Should the SAT still matter after all these years? Why some colleges are bringing it back

After decades of controversy over bias, the SAT is being brought back in commission by some colleges.

17 hours ago

Sponsored Articles

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Treasury secretary rules out bailout for Silicon Valley Bank