Yellen says no federal bailout for Silicon Valley Bank
- Many of its assets, such as bonds or mortgage-backed securities, lost market value as rates climbed.Sheila Bair, who was chairwoman of the FDIC during the 2008 financial crisis, recalled that with nearly all the bank failures then, “we sold a failed bank to a healthy bank.
- At more than $110 billion in assets, Signature Bank is the third-largest bank failure in U.S. history.The near-financial crisis that U.S. regulators had to intervene to prevent left Asian markets jittery as trading began Monday.
- But Hong Kong’s Hang Seng rose 1.4% and the Shanghai Composite increased 0.3%.In an effort to shore up confidence in the banking system, the Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank clients would be protected and able to access their money.
- The two failed banks themselves have not been rescued, and taxpayer money has not been provided to the banks.President Joe Biden said Sunday evening as he boarded Air Force One back to Washington that he would speak about the bank situation on Monday.
- Regulators had worked all weekend to try to find a buyer for the bank, which was the second-largest bank failure in history.
- Some prominent Silicon Valley executives feared that if Washington didn’t rescue the failed bank, customers would make runs on other financial institutions in the coming days.
WILMINGTON, Del. (AP) Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their m [+3149 chars]