Treasury Secretary Janet Yellen Rules Out Federal Bailout for Silicon Valley Bank Following Collapse

The Treasury Secretary Janet Yellen has ruled out a federal bailout for Silicon Valley Bank following its spectacular collapse last week. Yellen told CBS News that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and the Biden administration is not looking to do the same.

Shalanda Young, the director of the White House Office of Management and Budget, also stressed in an interview with CNN’s Kaitlan Collins on “State of the Union” that the US banking system at large was “more resilient” now due to the reforms put in place since the 2008 financial crisis.

Democratic Rep. Ro Khanna of California has urged the Biden administration to take “decisive action” in response to the rapid collapse of Silicon Valley Bank and ensure depositors will be protected and have access to their accounts Monday morning. Khanna said on “Face the Nation” that time is ticking for the Biden administration to take action.

The collapse of Silicon Valley Bank has caused panic among tech companies, with many people being emailed to pull their money out of the regional banks and put them in the Big Four. It is unclear what the Biden administration will do in response to the collapse, but it is clear that they understand the gravity of the situation.