Government to Aid SVB Depositors
The collapse of SVB Financial shook the finance sector this week, leading to the largest banking failure since the 2008 financial crisis. Yellen told CBS today of the government's involvement in aiding creditors amidst the closure.
Largest Banking Failure Since 2008 Financial Crisis
"Let me be clear that during the financial crisis, there were investors and owners of large systemic banks that were bailed out... and the reforms that have been put in place means we are not going to do that again," Yellen told CBS. The collapse of SVB is the largest bank failure since the 2008 financial crisis to which Yellen is referring.
No Bailout for Systemic Banks
Yellen added, "But we are concerned about depositors and focused on trying to meet their needs." Policies are likely being developed to aid US customers potentially threatened by the banks closing. The Federal Deposit Insurance Corporate (FDIC) took control of the bank on Friday, with no specific government action enacted yet.