According to Reuters, U.S. Treasury Secretary Janet Yellen confirmed that the failed Silicon Valley Bank (SVB) would get help from the government but ruled out a bailout for the bank.
Reacting to calls for a government bailout of the failed bank, Yellen said she was working with other financial regulators to protect depositors. She added that there were no plans for a major government bailout.
The Treasury Secretary argued that the banking reforms created following the 2008 financial crisis would prevent the issuance of bailouts. According to her, the U.S. banking system is more resilient and better capitalized than in 2008.
Meanwhile, Yellen emphasized that the focus of their intervention would be on depositors. However, she declined to provide more information on if depositors would get a full refund. Instead, she said the government fully recognizes how much of a concern this was to depositors.
