US government will release all assets of bankrupt Silicon Valley Bank

Normally, the US government only guarantees assets up to $ 250,000, but many of the assets were a lot higher. At the same time, Yellen made it clear that the American taxpayer will not have to foot the bill.

“Today, we are taking decisive action to protect the U.S. economy by strengthening public confidence in our banking system,” the statement said. “This move will ensure that the U.S. banking system continues to fulfill its vital role of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”

The same arrangement will also apply to Signature Bank, which was closed by US regulators on Sunday.

Yellen previously ruled out a rescue from SVB. In an interview with CBS, Yellen said the US government wants to make sure that other healthy banks are not affected by the problems. But SVB does not have to count on government money. “During the financial crisis (of 2008, ed.), investors in large systemic banks were bailed out by the US government. We’re not going to do that again.”

SVB – mainly active as a banker for tech companies – ran into difficulties last week and was closed by the authorities on Friday. This is the largest failure of an American bank since the financial crisis of 2008. At the end of last year, SVB managed more than USD 175 billion in assets.

The British government has announced an emergency support package for start-ups that have lost their assets with SVB. This should allow them to continue to pay wages and other ongoing costs, but details are not yet available. They are not expected until Monday local time.