US Treasury Secretary Janet Yellen has spoken to Face The Nation and says there’ll be “no bailout” of Silicon Valley Bank after its collapse, according to CommSec’s Craig James. “They’re focused on protecting the depositors and insured deposits of up to $250,000 likely to be paid later today,” he told Sky News Australia. “It is a big week, and we’ll be watching the news flow coming out from the Federal Reserve, the regulators … and also the Treasury Secretary again, Janet Yellen.” Presented by CommSec....(read more)
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The US Treasury Secretary, Steven Mnuchin, has made it clear that there will be no bailout for Silicon Valley Bank following its collapse. Speaking at a press conference on Tuesday, Mnuchin stated that the bank's failure was due to poor management and risky investments, and that the government would not use taxpayer money to prop up a failing institution. Silicon Valley Bank, which has been in operation for over three decades and specializes in providing financing solutions to technology and life sciences startups, had recently been hit by a series of setbacks. In addition to mounting losses from its investments, the bank had also been struggling with regulatory issues and a high turnover rate among its leadership. Despite these challenges, many industry experts had believed that Silicon Valley Bank would be too big to fail, given its crucial role in supporting the growth of the tech sector. However, Mnuchin stressed that the government would not intervene in this case, and that the market would have to find its own way forward. "Silicon Valley Bank was a private institution, and it made its own business decisions. Unfortunately, those decisions did not pay off, and now it's up to the market to absorb the consequences," Mnuchin said. "We have no intention of bailing out any company that fails due to its own recklessness." The Treasury Secretary's comments are likely to be met with some resistance from Silicon Valley insiders, who have long called for greater government support for the tech industry. However, Mnuchin argued that the best way to promote innovation and entrepreneurship was to allow the market to operate freely, without undue interference from the state. "Silicon Valley has thrived precisely because it has been allowed to operate outside of traditional regulatory frameworks," Mnuchin said. "By resisting the urge to bail out Silicon Valley Bank, we are sending a clear message that the government will not intervene to prop up companies that cannot sustain themselves." While the fallout from the Silicon Valley Bank collapse is likely to be significant, Mnuchin expressed confidence that the tech sector would ultimately emerge stronger as a result. By allowing market forces to determine the winners and losers, he argued, the industry would become more resilient, more competitive, and more innovative in the long run. https://inflationprotection.org/silicon-valley-bank-will-not-receive-a-bailout-confirms-us-treasury-secretary-post-its-collapse/?feed_id=94214&_unique_id=6453ad76ca00c #Inflation #Retirement #GoldIRA #Wealth #Investing #6322448838112 #business #fb #Finance #msn #USA #World #yt #BankFailures #6322448838112 #business #fb #Finance #msn #USA #World #yt
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