Yellen said Sunday that the government is working with the FDIC, the US deposit guarantee agency, to “solve” the SVB situation, where about 96% of deposits are not covered by the FDIC’s refund guarantee.
“I’m sure they (the FDIC) are looking at a wide range of available options, including acquisitions,” she said.
Yellen said the reforms made after the 2008 financial crisis meant the government was not considering rescuing the SVB.
“During the financial crisis there were investors and owners of large organized banks who were bailed out…and the reforms introduced mean we are not going to do it again,” she said. Said.
“But we care about our depositors and are focused on meeting their needs.”
In the wake of the 2008 collapse of Lehman Brothers and the ensuing financial crisis, US regulators required large banks to hold additional capital in case of trouble.
US and European authorities also conduct regular “stress tests” designed to expose the vulnerabilities of large banks.
https://www.channelnewsasia.com/business/us-silicon-valley-bank-svb-yellen-3341831 U.S. denies bailout of Silicon Valley banks, wants to avoid ‘contagion’: Yellen