The tech industry was left reeling last week when Silicon Valley Bank, one of the largest banks in the country, collapsed. In response to the news, both Senator Bob Menendez (D-N.J. ) and Representative Nancy Mace (R-S.C. ) have expressed their opposition to any potential bailout for the bank's owners and investors. Treasury Secretary Janet Yellen also clarified on the U.S. Government stance on a potential bailout, stating that the reforms that were in place since the 2008 banking crisis meant that the government would not consider such a measure.
Yellen Yellen noted that the U.S. The banking system is strong and that depositors should feel confident putting their money into banks. She also said that the government was monitoring some parts of the sector for ripple effects and that federal regulators were considering a wide range of options, including acquisitions, in order to resolve the situation. Former Speaker Nancy Pelosi (D-Calif.) expressed that she does not think "there's any appetite in this country for bailing out a bank" and Speaker Kevin McCarthy (R-Calif.) said on Fox News' "Sunday Morning Futures" that he believes a larger bank acquiring Silicon Valley Bank is a "great potential" and something the administration was considering.
The Bank's shutdown on Friday constituted the second-largest bank collapse in the U.S. Executives are now attempting to raise more than a billion dollars in capital to prevent customers from making a bank run. It is clear that both the government and the public are strongly opposed to a bailout, and the focus now is on finding a resolution that will keep the tech industry afloat while ensuring accountability.