Treasury Secretary Janet Yellen: “We Are Concerned About Depositors and Are Focused on Trying to Meet Their Needs” Following Silicon Valley Bank Collapse

Treasury Secretary Janet Yellen said Sunday that the federal government will not provide a bailout for Silicon Valley Bank’s investors after the bank was abruptly shuttered, but said financial regulators are “concerned” about the impact to depositors and working to address their needs.

Silicon Valley Bank, a go-to bank for US tech startups, collapsed Friday morning and was taken over by federal regulators. This followed a sudden bank run and capital crisis, leaving its high-powered customers and investors in limbo.

In an interview with “Face the Nation” on Sunday, Yellen said, “During the financial crisis, there were investors and owners of systemic large banks that were bailed out. But we are concerned about depositors and are focused on trying to meet their needs.”

At the end of last year, Silicon Valley Bank had $209 billion in total assets, according to the FDIC, making it one of the top 20 American commercial banks. It provided financing for almost half of US venture-backed technology and health care companies.

The failure of Silicon Valley Bank is the largest of a US bank since Washington Mutual in 2008. It is unclear what will happen to the bank’s customers and investors, but financial regulators are working to address the needs of depositors.