Silicon Valley Bank closure: Yellen says banking system ‘resilient’ as she meets with regulators

U.S. Treasury Secretary Janet Yellen on Friday convened monetary authorities to debate the closure of Silicon Valley Bank, and expressed “full confidence” banking regulators would act appropriately.

Earlier Friday, the Federal Deposit Insurance Corporation mentioned that the financial institution had been closed by the California Department of Financial Protection and Innovation.

Read: Silicon Valley Bank branches closed down by regulator with FDIC named receiver

The Treasury Department mentioned in a press release that Yellen famous “the banking system remains resilient and regulators have effective tools to address this type of event.”  

The closure got here amid a disaster at guardian SVB Financial Corp.
which misplaced a report 60% of its worth on Thursday.

The financial institution’s failure is the second greatest in U.S. historical past.

The secretary met with leaders from the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency.

Separately, talking to reporters on the White House, Cecilia Rouse, who chairs President Joe Biden’s Council of Economic Advisers, mentioned she had confidence within the banking system.

“Our banking system is in a fundamentally different place than it was a decade ago,” Rouse mentioned throughout a White House press briefing. She mentioned reforms that “were put into place back then really provide the kind of resilience that we’d like to see, so we have every faith in our regulators.”

The financial institution’s closure was additionally drawing consideration on Capitol Hill, as a spokeswoman for the Republican-led House Financial Services Committee advised MarketWatch that members are in contact with regulators and are carefully monitoring the state of affairs.

Sen. Sherrod Brown, the Ohio Democrat who heads the Senate Banking Committee, is “monitoring the situation closely,” a spokeswoman mentioned Friday.

“The FDIC and other banking regulators are on the job to protect insured depositors and our banking system,” she added.

Earlier Friday, Yellen advised U.S. lawmakers that there have been “recent developments that concern a few banks that I’m monitoring very carefully.”

Victor Reklaitis contributed to this story.

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