SVB’collapse won’t receive a government bailout -Yellen The Fed won’t bail out the Silicon Valley bank, says Janet Yellen, but it is trying to help savers worried about their money.

SVB has limits on accounts

SVB has a limit of 250,000 dollars on their accounts. There are fears some workers across the country are not being paid. On a show with CBS # 039; “Challenging the Nation”; Yellen gave little information about the government’s next steps.

However, he stressed that the current situation is very different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the sector. We will not repeat this mistake,” he said. “But we strive to meet their needs because we care about the depositors.

SVB’s collapse won’t affect Wall Street

The collapse of the Silicon Valley banking system as far as Wall Street was concerned. “The financial system is exceptionally safe and well capitalized,” she said. “It’s stubborn. Silicon Valley Bank is the sixteenth-largest bank in the country. After the collapse of Washington Mutual in 2008, it was the second-largest bank in American history.

The depositor’s worried

Most of the clients served by the bank are venture capital-backed companies, including some of the best-known names in the industry. Concerned Depositors When its customers, mostly technology companies needed cash despite difficulties in raising finance. Began withdrawing their deposits, Silicon Valley Bank began to fail.

The bank had to sell bonds at a loss to meet withdrawals, leading to the largest financial institution collapse in the United States since the height of the financial crisis. Silicon Valley Bank’s main problem, according to Yellen, is the increase in interest rates charged by the Federal Reserve to combat inflation.

As interest rates have risen, many of its assets, including bonds and mortgage-backed instruments, have lost their market value.