Despite the collapse, treasury secretary janelle yelin insisted the federal government would not bail out svb. i ve been working all weekend with our banking regulators to design appropriate policies to address this situation the american banking system is really safe and well capitalized. it s resilient we want to make sure that the troubles that exist at one bank don t create contagion to others that are sound. we ll go live to cnbc for much more on this straight ahead. let s now turn to one of the weekend s other major headlines. former vice president mike pence offered his sharpest criticism yet on former president donald trumpover the january 6th insurrection pence made the remarks on saturday at the annual grid ooirch din eric a closed door off-camera event attended by
Bail out svb i have been working all weekend with our banking regulators to design appropriate policies to address this situation. the american banking system is really safe and well capitalized. it s resilient we want to make sure that the troubles that exist at one bank don t create contagion to others that are sound that was a real concern yesterday. a concern after janet yellen s remarks, there had been a flurry of activity all weekend, but a of the remarks, the fear was you d have first rerepublica gon down today, other banks going down around the country. there was a fear yesterday that
Correspondent jake ward, correspondent allie raffa. jake, walk us through how officials made the decision to back silicon valley s deposits and what it means for the bank s customers this morning reporter: in a sense, lindsey, the government had no choice here. this was an a-rated bank, one with firm financial footing and seems to have made one big bad bet and it all went south. here is how janet yellen described the machinations over the weekend. i ve been working all weekend with our banking regulators to design appropriate policies to address this situation we want to make sure that the troubles that exist at one bank don t create contagion to others that are sound this, of course, lindsey, as the depositors at that bank,
Valley bank s failure: take a listen. i can t really provide further details at this time, but what i do wanting to do is emphasize that the american banking system is really safe and well capitalized. it s resilient. we want to make sure that the troubles that exist at one bank don t create contagion to others that are sound and a goal always of supervision and regulation is to make sure that contagion can t, can t occur. reporter: well, mike, despite that from the treasury secretary the, experts fear this could lead to a loss of faith in smaller and mid-sized banks which could then possibly trigger a bank run, trillions of dollars in size, and it could also kill thousands of start-ups and small businesses that rely on the bank to make payroll. congressman ro khanna, a democrat from california, says secretary yellen needs to do
It be? billionaire if investor bill ackman tweeted last night, sillen con valley bank customers will get around 50% monday/tuesday, and the balance realized over the next 3-6 months. if this proves true, i d expect bank runs monday morning. no company will take even a tiny chance of losing a dollar of deposits as there s no reward for this risk. after the systemwide fdic system deposit guarantee, more bank runs begin monday a.m. a whole lot of officials including treasury secretary janet yellen are trying to calm fear today. she points out it s highly unlikely, take a listen. the american banking system is really safe and well capitalized. it s resilient. we want to make sure that the troubles that that exist at one bank don t create contagion to