Treasury Secretary Janet Yellen on March 12 confirmed that the U.S. government will not bail out Silicon Valley Bank (SVB), but she conceded that officials must prevent a contagion effect in the financial system.
Since the collapse of SVB, there have been widespread contagion fears, with some experts warning that this could impact small and major banks, especially for institutions that are not well-capitalized.
Speaking in an interview with CBS’ “Face the Nation” on Sunday, Yellen confirmed that a bailout is not an option on the table, as authorities are focused on meeting the needs of depositors. During this process, she noted, regulators are determining that SVB’s troubles do not lead to broader consequences for other banks….