Treasury Secretary Janet Yellen called the Silicon Valley Bank failure a “concern,” but she emphasized that there would not be a bailout. “We’re not going to do that again,” she told “Face the Nation.”
#news #economy #siliconvalleybank
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The Federal Reserve Chair, Janet Yellen, has ruled out any bailout for Silicon Valley Bank, stating that the government will not repeat the mistakes it made during the 2008 financial crisis.
“We’re not going to do that again,” Yellen said in a press conference on Tuesday. “I believe that we have tools to prevent systemic risk from these institutions. And it’s important that we use those tools.”
Her comments came in response to a question about whether the Fed would bail out Silicon Valley Bank, which has been struggling with mounting losses in recent months. The bank, which is based in Santa Clara, California, specializes in lending to start-ups and technology companies.
Yellen’s statement was a clear message to the financial industry that the government is not going to backstop risky investments or bail out firms that have taken excessive risks.
During the 2008 financial crisis, the government bailed out a number of large banks and financial institutions that had made risky bets on subprime mortgages. Critics argued that this rescue effort sent a message that these institutions were “too big to fail,” leading to even riskier behavior in the future.
Yellen’s comments reflect a growing concern among policymakers that some trends in the technology industry are reminiscent of the subprime mortgage crisis. The tech sector has seen a wave of overvaluation and overinvestment in recent years, with investors pouring billions of dollars into unprofitable start-ups.
Many economists and analysts have warned that the tech bubble could burst, causing widespread damage to the economy. A bailout for Silicon Valley Bank would only fuel these concerns and reinforce the belief that the government will always be there to rescue failing companies.
Yellen’s statement is a clear signal that the government is not going to repeat the mistakes of the past. While it may be tough for Silicon Valley Bank and other struggling firms, it’s ultimately a positive move for the stability of the financial system and the economy as a whole.
bursuck, I am real no real. Do you think, so!. Wait. look at.
Cancelling freak shows was a bad idea.
All the freaks, needing jobs, became politicians, bureaucrats, lawyers, activists, teachers and celebrities….
It’s our contagious. The banks are contagious and she is contagious. She’s such a liar the government lies the schools lie businesses lie, who’s telling the truth just us
She played a Janet Jackson. What have you done for her lately Treasury Secretary? Wow she laid out her teeth a week ago.
It’s working the fed raising the interest rates doing the job putting people out of work called layoffs.
Government bailout? I thought only communist regimes like China does it !! The US is supposed to be "free market".
Most of the President Biden are not up to the job, as you can see Mr. Transportation Secretary and now Yellen.
Bring back the Glass Segall.
ANYTHING above that of the FDIC insurance is a BAILOUT. She and Biden should be in a nursing home NOT in charge. Barney FRANK'S bank FAILED. Those depositors are their donor class.
Modern capitalism only works correctly with cheap energy prices and access to raw materials globally. Here in the US, consumers are getting hammered with energy price increases and the only way to get inflation under control is to get consumers to stop spending and raising interest rates is specifically designed to do just that. What that means is that a large chunk of people is going to be pushed out of participating in capitalism until interest rates are low enough to stabilize the financial system. I'm still at a crossroads deciding if to liquidate my $138k stock portfolio, what’s the best way to take advantage of this bear market
Bad start to the year with these banks collapsing, META down 40k, ALLP down 35k, Draft Kings down 6k, NIO down 15K, ABML down 8k, and my wife doesn’t know. I'm just hanging on to Jim Cramer's words about opportunities in volatile times so perhaps, I either wait for a recovery or pick profitable investments to substitute for my loss.
"The insurance fund for deposits is funded by fees on banks?" Liquidity of banks is 10 percent and liquidity means debts you can sell within 30 days. Not gold bars or silver sterling.
SHE BAILED OUT SVB! How is this not a bailout? Owners got to sell off their stock before the crash! Management got big bonuses!
Since Yellen can't understand numbers, maybe she should go back and focus on her shapes and colors…naptime and a juice box..
Another useless Biden administration official. Get rid of the incompetent old bird.
We should take out our money from the banks we can't trust them they just use us
She couldn't run a McDonald's. It was obvious she would bail out SVB.
Why does she talk so slowly?With a gap between every word.Is she having a stroke?
These government so called officials need to be fired and we need to go back to gold which is real money not this fiat currency!
California Gov. Gavin Newsom failed to publicly disclose his SVB ties(his 3 wineries and wife's charity) while lobbying for a bailout.
That means she is going to bail out the RICH TECH EXECS! They are rich and she is one of them! The insurance is 250k. She will give them billions of our money to the RICH! We said that and she did!
blockbuster show in America. Retribution for creating chaos worldwide, stealing resources, sanctioning, freezing assets….etc. Trump will still be part of the elite and problem.
And then they go ahead and bail them out?
Another woke failure under the biden admin.
No bail our? Didn't. They get bailed out yesterday
Everything yellen has said so far turned out to be wrong.
Either she is incompetent or has been lying.
Is it going to be investigated for fraud, cut shorts or violation of compliance??
FDIC and it's rule was created by the government, now they don't follow their own rules what a joke.
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