After Silicon Valley Bank’s dramatic downfall, Treasury Secretary Janet Yellen insisted a government bailout is off the table.
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The recent news of Silicon Valley Bank (SVB) faced with significant financial challenges and requesting a bailout from the Federal Reserve has not received the positive response it had hoped for. The current treasury secretary, Janet Yellen, has made it clear that no bailout will be provided to SVB.
As the head of the Federal Reserve from 2014 to 2018, Yellen has extensive experience dealing with financial crises and ensuring the stability of the US economy. Her decision to deny a bailout for SVB is based on her commitment to preventing moral hazard and ensuring that financial institutions are held accountable for their actions.
Moral hazard is a term used to describe the incentives that arise when an individual or organization is protected from the consequences of its actions. If SVB is bailed out, it could create the perception that there is an implicit guarantee of protection from potential losses. This perception would lead to a moral hazard and further increase the risk-taking behavior of financial institutions, leading to more significant problems in the future.
Additionally, Yellen’s decision is based on her belief that financial institutions should bear the consequences of their decisions. The failure of an institution like SVB would lead to a loss of confidence in the financial system’s stability, but one must realize that bailout actually leads to the creation of future problems in financial systems. A bailout would have difficult consequences and would create an expectation that other financial institutions would enjoy the same economic protection in the event of a crisis.
Moreover, people often often forget that the Treasury, Central banks, or governments don’t produce money, they borrow it. In other words, the taxpayers – me, you and the rest of the population – are the ultimate guarantees. Bailouts made at times of crises would put an unnecessary burden on the population by bailing out institutions that were imprudent.
While Yellen’s decision may seem harsh, it is essential to maintain the integrity and stability of the financial system. Financial institutions should be held responsible for their actions and take steps to address their financial problems, even if it means restructuring or sale of business. It is only through such actions that the financial system can be strengthened and experience long-term growth.
In conclusion, Yellen’s decision to deny SVB’s request for a bailout is consistent with her commitment to prevent moral hazard and ensure that financial institutions are held accountable for their decisions. The stability of the financial system relies on these principles, and deviations can lead to more significant problems.
What a pathetic so democrat joke. Do let’s see Democrat Yellin…A Democrat bank, Democrat board, Democrat bank president, Democrat payments to Democrat blm, Democrat regulations, Democrat oversight, Democrat establishment that goes from working in banks to working in government regulators, Democrat CA state, Democrat CA Governor who had millions in same Democrat bank. Did I miss anything? Oh stupid me, it’s President Trumps fault since bipartisan bill changed mortgage rules for regional banks on mortgages at or less $500,000. Democrat much
JEWISH CRIMINAL LOBBY WORKING TO BAIL OUT BANKS FOR THEIR OWN CRIMINAL NEGLIGENCE AT THE COST OF THE HARDWORKING AMERICAN PEOPLE THUS MAKING AMERICANS POOR AND UNEMPLOYED.
Yellen is not fooling anyone with her little old lady look… she is a globalist Rothschild witch if there ever was one. Lucky for her, humanity no longer burns witches at the stake… or do we? Guess we'll find out sooner than later now won't we. Oh common maaan, as Bigone Biden says… we know exactly who is doing this, don't fool yourselves.
Dovete morire tutti,americani di merda satanisti malefici!
Favoring the BIG wealthy bankster's banks over lower and middle class supported community banks is back room RACISM.
no bailouts says yellen, then proccedes to bailout svb.
What a hypocrite, says no bail out but after pressure from woke billionaire friends, folds like a lawn chair and dies a 360. Now if smaller rural banks in trouble will say not systemic risk, myself, Biden, FDIC has determined farmers bank whose constituents are conservative leaning does not pose a systemic risk so we will let them go under and depositors will get screwed
The Democrat solution, just keep printing money and throwing money at the problem rather than fix it. Businesses fail because of poor management, when they fail they shouldn't be bailed out because that's not incentive for them to change their behavior. If your child steals something, do you reward them for it?
She's lying. Biden has already bailed out three banks to protect the rich. These are not a bank that loan the people, these banks loan to the rich for hair brain crap and to build yachts and palaces. Let's recap. Working tax payers pay to prop up high risk banks so the rich in government can raise you tax so the rich slop up everything. Corruption. We need a revolution against the RNC and the DNC.
Biden has used us tax dollars to bail out three banks.. Now you tell me one side or the other is any better than the other, and I will tell you that they are all grifters. They're using the poor people's tax money to pay rich people to buy yachts and palaces so they can continue to raise tax rates continue to hike interest rates continue to raise rent prices to keep rich getting richer. The Democrats and Republicans are destroying our country, our government, stealing all of the taxpayers money to pay cronies. We need a revolution!!!!!!!!!
Translation: you’re not too big to fail, no bailout
No bailout wink wink
Just another useless incompetent, Biden administration official. Get rid of the old bird and replace her with someone that knows what they are doing!
DON'T
YOU
NO
NO
NO
WHAT YOU ARE DOING 4FREE
AND+AMEN
if there is one thing americans are allergic to today its responsibility. car companys failed bail them out no responsibility for any one but tax payers who had no say in bailing them out. gona happen again here. yeah there is no way this country can last much longer.
Throwing money on a cash fire will not stop the burn !! Ellie may is bakin you a cake
IF CENTRAL BANK WANT 7 % ON LOANS FROM PUBLIC TAXES THEN LOANS AT 7% THE BANK''s LOAN's THE PUBLIC AT THE SAME 7 % HOW YOU ANY BANK STOCK's ON AIR AND CON''s ! HOW BANKS PAY THE STAFF AND RENT OF BUILDING IF THE BANKS BROKE AND NEED THE MONEY AT 7 % FROM THE CENTRAL BANK HOW DID ANY GET THE INTEREST RATE HIKE ON SIGNED CONTRACT''s SIGNED AT LOWER RATE's ! THE LAWYERS''s AND COURTS ON CONTRACT LAW''s LOST THE HUMPS BALL's ON LAW's TODAY THE FOOL's NEED LIGHT ITS SUMMER TIME HEAT !
IT IS A BAILOUT!
Why do we have these OLD CROOKS in office????
Saying this politicians are not bailing out SVB is like saying Biden is not a child molester.
More Joe Biden incompetency period this administration is a mess
She really enjoys lying.
Uh, that bailout just INCREASED inflation.
just because janet is pretending to claim the bailout isnt a bailout, its still a bailout.
Isn't Silicon Valley Bank the bank where California Governor Newsom has his personal and business accounts? He must be very happy Biden has given him a bailout!
evil lying witch! Why not forgive student debt?
This is a bailout
Attack the energy sector of your own countries economy and the Petro dollar dies. Way to go Brandon!
Monetary policy is the biggest pyramid scheme in history. Worse than crypto. Thank you Rothschilds, Rockefeller’s and warburgers
IT IS A BAILOUT. This is no longer a conspiracy, it is obvious. The corporate media is in bed with the government, wall street, and the military industrial complex. WE ARE IN TROUBLE PEOPLE.
Fire Yellen!!!
if you dont know, they just took away all food stamp recipients covid bonus to bail out the banks. Keep the poor poor while the rich get richer. I can't stand this country.
A lie they are getting a bail out
Magic money since when was a billion dollar company a small business lol remember full bailout for them no means testing and you might get 10k for your federal backed student loans if you make under $150k lmfaoooooo suckers they wanted this and now we have to bail them out again but not you
this video didn’t age well
lol no bail
More bailouts coming
https://youtu.be/EQO4AFabpmA
Yellen is a BIG liar
Bull SHUT!
Lindsey: you are one of those people borrowing white gloves below market. You are no innocent depositor
If you are not furious right now you are not paying attention. The Federal Reserve is bailing out the failing banks through inflation. They are printing more money to pay off the depositors 100% instead of only $250K thru FDIC insurance. This reduces the value of our dollars and suspends any liability from attachment to bad institutional banking investments such as ESG crap like in the case of SVB. What this means is the Federal Reserve just stole our money thru inflation that is invisible to us. Banks just got a free pass from any liability and have unlimited risk… because they will be made whole while our money devalues to cover their bad investments. The second and third order effects of this will be significantly worse. This fixes nothing but we just paid for the bank failures. Wake up!!!!!!"
No more mean tweets !
All Lies… they will bailout SVB and the Elites who buy Politicians!
If all the deposits are being covered by the government of course it's a bailout. Where else is the money coming from but the taxpayers. Why isn't it reported this way?. Obviously they think we're all stupid… the way people swallow up MSNBC , CNN and the mass media one can only come to the conclusion there's a lot of sheeple just buying everything the fake news says
And then they bailed it out. The average bank account holds 9k ( non college educated) to 77k ( college educated). 94% of these accounts were over the 250k threshold. They're bailing out their donors. These aren't single mothers locked out of the atm. Yellen can't even get thru 24 hours without a lie.
We are not stupid… this is indeed a bailout
Her money is safe she should not exaggerate the situation.