The start-up financier SVB has been hit and placed under state supervision. But the Treasury Department in Washington rules out a rescue.
US Treasury Secretary Janet Yellen has ruled out a state bailout of the US financial institution Silicon Valley Bank (SVB). In the financial crisis a few years ago, the government intervened in this way, said Yellen on Sunday in an interview with the CBS television station.
But she emphasized: “We won’t do that again.” Yellen referred to reforms that have been implemented since the financial crisis. At the same time, she emphasized with a view to the SVB crisis: “But we are concerned about the depositors and are concentrating on meeting their needs.”
On Friday, the Silicon Valley Bank, which specializes in start-up financing, was temporarily closed after a failed emergency capital increase and placed under state control. This caused unrest around the world.
Yellen said that when a bank, especially one like Silicon Valley Bank, with billions of dollars in deposits, fails, it is “obviously a cause for concern.” However, she emphasized that the American banking system is “really safe” and resilient. Americans could have confidence in the safety and soundness of the US banking system. With a view to the further action of the US Federal Reserve in the current situation, the minister did not want to comment further and referred to their independence.
The Federal Reserve leadership is meeting on Monday. The meeting, which starts at 11:30 a.m. (local time/4:30 p.m. CET), will deal with the review and determination of prepayment and discount rates, according to a statement that can be viewed on the website over the weekend.