Amid the growing fallout from the US Silicon Valley bank bankruptcy,
US Treasury Secretary Janet Yellen says she is not considering a bailout. The situation is different from the last financial crisis in 2008, but we took urgent measures to prevent the spread of the crisis, such as auctioning bank assets.
Yoon-so Kim is a correspondent in Washington.
U.S. Treasury Secretary
Janet Yellen says she is not considering a federal bailout of a bankrupt Silicon Valley bank.
It clearly drew a line under calls for federal intervention amid concerns that the bank's bankruptcy, which used to be the "money line" for U.S. startups, would hurt other banks as well as the bankruptcy.
Secretary Yellen said the situation is different than it was during the 2008 financial crisis and stressed that the U.S. banking system is safe today.
[Janet Yellen/U.S. Treasury Secretary: The big banks were bailed out (in 2008), but now they're not considering that. We don't have to bail out again because the reforms were done right then.]
U.S. treasury authorities, however, took an urgent response to the initial evolution of the situation.
The U.S. Federal Deposit Insurance Corporation, designated as the bankruptcy trustee, immediately began the auction process for Silicon Valley Bank assets.
The idea is to sell assets to free up funds for customers to get their deposits back as much as possible.
It is also said that they are looking for a company to take over the entire bankruptcy bank.
But the jitters have not subsided, with representatives of Silicon Valley and other companies employing 22,10 workers signing a petition calling for direct government intervention, saying more than <>,<> jobs could be at risk.
U.S. treasury authorities are expected to come up with a major response before the U.S. financial markets open on Monday, and attention is focused on what will come out.
(Video Interview: Park Eun-hae, Video Editing: Jung Sung-hoon)
SVB asset sale undertaken... U.S. Treasury "Not considering bailouts"
Amid the growing fallout from the Silicon Valley bank bankruptcy, U.S. Treasury Secretary Janet Yellen says she is not considering a bailout. The situation is different from the last financial crisis in 2008, but we took urgent measures to prevent the spread of the crisis, such as auctioning bank assets.