Silicon Valley Bank will not get a government bailout, Treasury Secretary Janet Yellen said on the news program Face the Nation Sunday.
The tech industry-driven bank was shut down by regulators this week, sending shockwaves around the crypto industry. USDC issuer Circle and other companies have billions in uninsured funds stuck at SVB.
"During the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we're certainly not looking," Yellen said. "And the reforms that have been put in place means that we're not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs."
Still, Yellen said that the "American banking system is really safe and well-capitalized," referring to new controls implemented after the 2008 financial crisis.
"We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," Yellen said.
The Federal Deposit Insurance Corporation (FDIC), which took over as the bank's receiver, is auctioning SVB's assets. Final bids are due Sunday, Bloomberg reported.
The agency has been rushing to sell the bank over the weekend, in an effort to make as many funds available as possible by Monday as trading resumes. Deposits up to $250,000 are insured by FDIC.
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