US Treasury Secretary Yellen against government bailouts

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In the financial crisis of a few years ago, the government intervened in this way, Yellen said in an interview with the American television channel CBS on Sunday. But she insisted, “We’re not doing that again.”

Yellen referred to reforms implemented since the financial crisis. At the same time, in view of the banking crisis in Silicon Valley, she emphasized: “But we are concerned about savers and are focusing on meeting their needs.”

The American money house Silicon Valley Bank (SVB), which specializes in seed financing, has been temporarily closed and placed under state control after a failed emergency capital increase. The American deposit insurance company FDIC announced this on Friday.

Founded in 1983, the SVB had seen huge cash withdrawals in recent days due to liquidity problems. The SVB share was suspended on Friday after a price drop due to the acute emergency. Other banks also came under considerable pressure on the stock exchange.

The voluntary resolution of US crypto bank Silvergate Capital had also sent shock waves through parts of the financial sector. Silvergate had already warned in the wake of the bankruptcy of the FTX crypto exchange that the company might have to close. However, Silvergate announced that it would refund all customer deposits.

The fear of defaults in the banking sector had increased again and the problems of the US banks also caused uncertainty on the European stock markets.

(SDA)

Source: Blick