The bank’s meltdown, sparked by a massive surge of withdrawals, has left depositors worried they may not see their money again. CBS2’s Cristian Benavides has the story….(read more)
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Earlier this month, the chairman of the Federal Reserve, Janet Yellen, stated that no bailout is planned for Silicon Valley Bank. This news may have come as a surprise to many who assumed that a bank in Silicon Valley would be deemed too important to fail.
However, Yellen’s statement is in line with the current policy of the Federal Reserve to avoid bailouts of individual institutions in favor of maintaining market stability through regulation and oversight. This policy was put in place following the financial crisis of 2008, which saw large bailouts of banks deemed “too big to fail.”
Silicon Valley Bank, which focuses on serving innovative startups and technology firms, has faced criticism for its risky lending practices. The bank has seen high rates of defaults and non-performing loans, prompting concerns about its financial stability.
Despite these concerns, Yellen emphasized that the bank’s troubles are not at a level that would require a bailout. She also stated that the bank’s risk profile is well-known and that the Federal Reserve is closely monitoring its operations.
This decision sends a message to financial institutions that they will need to face the consequences of their actions and that the risks they take will not be mitigated by government bailouts. It also underscores the importance of effective risk management and responsible lending practices.
Furthermore, Yellen’s statement is a reminder of the crucial role played by regulators in protecting the stability of the financial system. Rather than relying on bailouts as a safety net, the Federal Reserve’s emphasis on regulation and oversight can prevent individual institutions from causing disruptions that could ripple throughout the economy.
In the end, Yellen’s decision not to bail out Silicon Valley Bank sends a strong signal to the banking industry that risky behavior will not be rewarded. It also underscores the need for, and importance of, effective regulation and oversight in the financial system.
If Yellen say's there is no plan to bail these banks out, you know damn well they plan to bail these banks out.
I would've done the same no bail out take your losses and move on.
Good idea let them step in it.
Looks like the government will need to buy back low interest treasuries, and replace them with higher interest treasuries. Guarantee that many banks will take advantage of this, while continuing to pay 1% in billions of CDs. Sheesh….
they should and nobody should keep all their money in one bank. credit unions are the best. everyone should know that the insurance only cover 250k. the congress mans is being bribed by the rich customers to give all their money back from the government.if they did not have so many rich customers they would not ask for this. banks should be banks. they should loan money out,take deposits. that is it, they should not be on the stock market. that is for separate companies.this bank handle venture capital money which can be very risky.
Print more money yellen
Gary Becker, Silicone Valley Bank GEO, sold $3.6 million of company stock on Thursday, bank failed Friday. Where are the cops?
Old news, there is a bail out for depositers
time to buy Bank of America stock, we green Monday
No bailout but Ukraine gets billions of billions of dollars
The good thing about being poor is I don't give a shit about this story
It's about time they sink qnd Perish. Too much banks and too many low income families. Let it stay shut down.
Another Bank is Gone but the media is not talking about it
Signature Bank is a New York-based full-service commercial bank with 38 private client offices throughout New York, Connecticut, California, and North Carolina.[4] Signature Bank's specialty finance subsidiary, Signature Financial LLC, provides equipment finance and leasing.[5] Signature Securities Group Corporation, a wholly-owned subsidiary, is a licensed broker-dealer and investment adviser offering investment, brokerage, asset management, and insurance products and services.[6]
At the end of 2021, the bank had total assets of $118 billion, deposits of $85.31 billion, and loans of $65.25 billion. Banking officials in New York state closed the bank on March 12, 2023, two days after Silicon Valley Bank was seized.
Billionaire investor Bill Ackman calls on Biden to bail out SVB by Monday
morning or face a catastrophic market meltdown and loss of tens of thousands of jobs….., should be very interesting.
Taxpayers are going to pay the bill
jesus lady. when are you gonnna retire? lookin like your pushing 90.