Yellen has suggested that there won't be a bailout for SVB. This doesn't mean that they aren't working though to try and potentially help depositors who are worried about losing money. There are concerns about employees being paid and businesses being able to operate as usual, how far might this issue extend? It will be interesting to watch what unfolds tomorrow when the markets open.
Yellen suggested that this situation is very different from what was faced over a decade ago and they 'are not going to do that again' when it comes to giving out a bailout as we have previously seen.
Could that happen anyway despite that suggestion?
Will more chaos be prevented with the actions that they take?
Will concern grow with consumers?
Some might be surprised to find out that an old fashioned run on the bank could even happen in the US with customers looking to take out funds and finding that there is a problem with trying to do just that.
Now some are criticizing Silicon Valley Libertarians too over their supposed small gov preferences if they are going to advocate for any such bailout in a situation like this.
Will there be an auction and will they find a potential buyer anytime soon?
What will that mean for customers?
US regulators have seemingly suggested according to news reports from CNN and others that SVB customers will be made whole and that this won't become a problem for taxpayers. Will this stop the problem from growing any further?
pics:
pixabay
This is not financial advice.
sources:
https://www.theguardian.com/business/2023/mar/12/silicon-valley-bank-collapse-no-bailout-janet-yellen
https://www.ft.com/content/6a77d81b-7376-4ccf-80a2-3336af04d04b