![]() ![]() The bank’s tech industry and venture capital clients rushed to withdraw their money when it became clear SVB faced the threat of insolvency. SVB faced massive unrealized losses on its long-term treasury bond investments due to the Federal Reserve’s interest rate hikes. Yellen noted Thursday that the unprecedented action did not protect shareholders. The Fed, meanwhile, launched an emergency lending program to help banks weather a surge in withdrawals. Regulators ensured that the banks’ clients got their deposits back using a fund paid for by fees on banks. “This week’s actions demonstrate our resolute commitment to ensure that our financial system remains strong and the depositors’ savings remain safe.” ![]() “I can reassure the members of the committee that our banking system is sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen told the Senate Finance Committee. ![]()
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