Yellen offers (some) clarity on SVB
There seems to be light at the end of the tunnel, even though it isn’t clear as to when founders and wider Silicon Valley community can exhale, even for a minute. The US Treasury Secretary Janet Yellen spoke to the Face the Nation this morning. Her comments reveal that the government doesn’t want it to become a contagion that spreads to other banks. As many have said, this could undermine the faith in US banking system from the point of view of depositors.
TL:DR from a Silicon Valley point of view — there won’t be a bailout of the bank. Instead, the focus is going to be entirely on the depositors. She and other federal reserve regulators understand the gravity of the situation and need of the hour.
Here are the bits from her comments that I found relevant.Continue reading “Yellen offers (some) clarity on SVB”