'Working to address SVB collapse, but not looking at bailout,' says US Treasury Secretary Janet Yellen

US Treasury Secretary Janet Yellen has responded to the collapse of Silicon Valley Bank by stating that she is working with banking regulators to protect depositors. She also reassured the public that the US banking system is safe and resilient.

Yellen commented on the possibility of a bailout for Silicon Valley Bank, stating that regulators are considering a wide range of options but a bailout isn't one of them as of now.

"Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out...and the reforms that have been put in place means we are not going to do that again," Yellen told CBS.

Also read: FDIC takes control of collapsed Silicon Valley Bank, retains employees for 45 days at 1.5x salary

"We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," she added.

The collapse of the bank has raised concerns about the stability of regional banks and the ability of small businesses to pay their employees.

Yellen met with officials from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency to discuss the situation.

While the FDIC has stepped in to protect deposits of up to $2,50,000, deposits over that amount are at risk.

More than 3,500 CEOs and founders have signed a petition calling for the backing of depositors and warning that over 100,000 jobs are at risk. Venture investors have advised startups to seek alternative sources of liquidity.

Also read: Silicon Valley Bank fallout: Nazara Technologies' subsidiaries hold Rs 64 crore in cash at collapsed lender