Treasury Secretary Janet Yellen said on Sunday that the U.S. government will not bail out Silicon Valley banks, but worries depositors are reeling from the worst bank failure since the 2008 financial crisis. will try to help them.
The sudden collapse of Silicon Valley Bank, the lifeblood of young tech companies, has sent shockwaves through the startup ecosystem as countless companies scramble to find ways to cover salaries and other operating expenses next week.
“Let me be clear there were investors and owners of big banks bailed out during the financial crisis, but we certainly didn’t see them. But we are concerned about our depositors and we are focused on meeting their needs,” Yellen told CBS in an interview on Sunday. rice field.
Yellen offered few details about the government’s next steps, but argued that the impact of Silicon Valley Bank was a different picture than the 2008 financial crisis.
“Look, I’m not going to comment on the details of the situation at this point. Small businesses that are hiring, and of course, this is a significant concern and we are working with regulators to try to address these concerns,” she told the station.
Garry Tan, president of Kingmaker’s startup accelerator Y Combinator, said more than 1,000 portfolio startups were affected by the SVB collapse and called on Congress on Saturday to take tougher action to save lenders. I asked.
“We are not asking bank shareholders or management to save the money. We are asking them to save the innovation of the American economy. We seek relief and attention to the imminent and severe impact of the Silicon Valley Bank, which has more than 37,000 small businesses with more than $250,000 in deposits, according to the NVCA.
The Silicon Valley Bank crisis affects businesses more than 8,000 miles away. More than 60 YC-backed Indian startups have more than $250,000 stuck in Silicon Valley bank accounts, and nearly 20 have tied more than $1 million to lenders, TechCrunch previously reported. .
“Americans need to be confident that the banking system is safe and sound, able to meet the credit needs of households and businesses, and that depositors will not have to worry about losing access to their money. I have.
