Jamal Al-Farouq Janet Yellen, the Treasury Secretary of the U.S., said no to a government help for Silicon Valley Bank (SVB) which had to close its business last Friday. She mentioned that when the crisis occurred in 2008, some necessary steps were taken by them with goal of stopping any type of government bailout.
Janet Yellen’s Thoughts on SVB
Janet Yellen, the Secretary of the U.S. Treasury Department, said in a recent interview on CBS News that the government will not be giving any help to Silicon Valley Bank (SVB) which shut down on Friday and was taken over by the Federal Deposit Insurance Corporation (FDIC).
Someone asked if the U.S. government needs to take action because Silicon Valley Bank (SVB) failed. The treasury secretary replied: “It’s an issue of concern because America’s economy depends on having a secure banking system that can give people and companies access to credit.” In other words, it’s important for banks like SVB, which has billions in deposits, to be strong and successful.
Over the weekend, I worked with our banking regulators to create guidelines and rules that can help us tackle this difficult problem. After the financial crisis of 2008, some new policies were established to make sure our banks remain safe and secure like during early days of the Coronavirus pandemic these safeguards really came into play. This means we can trust in the support and stability offered by our banking system.
When someone asked the treasury secretary if it’s possible for Silicon Valley Bank to get a bailout from the government, she said no. She explained that after the financial crisis, large banks were bailed out, but such an event will not occur again due to reforms put in place afterwards.
Even though she couldn’t give specifics, Yellen was still sure to assert that America’s banks are really safe and have plenty of money. She also stated that the government is paying attention to the situation involving SVB in which a lot of startup companies and venture capital firms had their money affected by its failure, and they’re doing their best to sort it out.
When the Silicon Valley Bank stopped working, Bill Ackman – who is an important CEO and money manager – warned everyone that it could lead to very serious problems. He even predicted that other banks might soon crash. Robert Kiyosaki, who wrote the book Rich Dad Poor Dad, also believes a bank crash may be coming.
Do you agree with the statements Treasury Secretary Janet Yellen made? Also, should the government save SVB? Let us know your opinion in the comments section.
