Treasury Secretary Janet Yellen said, “Measures against the SVB bankruptcy are being closely worked out with bank supervisory officials. But we are not thinking of a bailout,” he said.
Appearing on the CBS Sunday Morning News on the 12th (local time), Minister Yellen said, “We are discussing with the authorities to establish a policy to appropriately handle the current situation.”
Secretary Yellen did not talk about specific plans.
“During the financial crisis, there was a bailout for investors and owners of large banks. I will not use a tool like this again,” he said.
“We are concerned about our depositors and we are focused on working to meet their needs,” Yellen said.
“The banking system in the United States is secure, well capitalized, and has maintained its capital needs well after the 2008 crisis,” Yellen said.
“The public needs to be assured that the banking system is safe and sound,” Yellen said.
“Technology issues are not at the heart of this issue,” Yellen said. The Fed’s rate hike had an impact,” he explained. Rising interest rates have reduced the value of the assets held by banks.
“We expect regulators to consider the wide range of options available, including the acquisition of SVB by other entities,” Yellen added.
The Federal Deposit Insurance Corporation, which manages the SVB, is expected to allow some of its deposits to be withdrawn as early as Monday. The US offers depositor protection up to $250,000.
Some are concerned that if guarantees are not provided for all deposits, other small and medium-sized banks and regional banks will run into bank runs.
SVB’s assets are $212 billion (280 trillion won), making it the 16th largest bank in the United States. It is the largest bank failure since Washington Mutual collapsed during the 2008 financial crisis.
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[SVB 파산] Possible future scenarios… It depends on whether the taker comes out on the weekend