The US Treasury Department makes its decision on the bank failure that shook the world

In an interview with CBS, Minister Yellen made assessments of developments around the SVB and concerns in the US banking system.

Affirming that the US banking system is safe and well capitalized, Yellen said she worked with banking regulators all weekend to devise appropriate policies to address the situation.

Yellen noted that they want to make sure that problems at one bank don’t spread to other banks that are healthy.

“WE WILL NOT DO IT AGAIN”

Emphasizing that the situation is very different from the financial crisis some 15 years ago, which led to bank bailouts to protect the industry, Yellen said: “We won’t do this (the recovery package) again. But we are concerned about depositors and focused on meeting their needs.” he used the phrase.

LARGEST BANKRUPTCY SINCE 2008

The share price had lost more than 60 percent last week after California-based SVB closed its $21 billion bond position at a loss of about $1.8 billion and announced it would raise more than $2 billion. million in equity.

Its operations were suspended because the bank kept losing after some venture capital investors advised companies to withdraw their money from the bank.

The US Federal Deposit Insurance Corporation (FDIC) announced on March 10 that a trustee has been appointed to the SVB, sending markets tumbling. In the statement made by the FDIC, it was noted that the SVB was the first FDIC-insured institution to file for bankruptcy this year.

The SVB bankruptcy was one of the largest bankruptcies recorded in the US since the 2008 global financial crisis. Washington Mutual experienced the largest bankruptcy of its kind during the 2008 crisis.

SVB, the 16th largest bank in the US, specializing in technology industry banking. (AA)