Mar 13, 2023

Yellen Working to Protect SVB Investors, Not Bailout

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United States Treasury Secretary Janet Yellen recently revealed that she and other regulators are working on appropriate policies to address the situation of the Silicon Valley Bank’s collapse, but that a major bailout is not currently being considered.

In an interview with CBS News on March 12, Yellen stated: “During the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking. And the reforms that have been put in place means that we’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs.”

Yellen also noted that regulators are aware of the problems that depositors will face, especially those who are small businesses. She stated: “We want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound. And the goal always is supervision and regulation is to make sure that contagion can’t- can’t occur.”

Silicon Valley Bank is one of the top 20 largest banks in the United States, providing banking services to many crypto-friendly venture firms. According to a Castle Hill report, assets from Web3 venture capitalists totaled more than $6 billion at the bank, including $2.85 billion from Andreessen Horowitz, $1.72 billion from Paradigm and $560 million from Pantera Capital.

Data from the Federal Reserve shows that small banks in the U.S. had $6.8 trillion in assets and $680 billion in equity as of February 2023. A failure on the tech bank would put in “risk of a run on thousands of small banks,” as reported by Cointelegraph.

Silicon Valley was shut down by California’s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising $2.25 billion capital to shore up operations. The FDIC was appointed as the receiver to protect insured deposits, however, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category.

Yellen mentioned that the Federal Deposit Insurance Corporation (FDIC) is considering “a wide range of available options”, including acquisitions from foreign banks. “We certainly are working to address the situation in a timely way,” she noted.

The collapse of Silicon Valley Bank has caused a stir in the web3 space, with many investors and businesses wondering what the future holds. While Yellen and other regulators are working to protect depositors, there are still many questions as to how to best handle the situation.

One potential solution is NFT marketing. NFTs (non-fungible tokens) are digital assets that are unique and can be used to promote a product or service. In the case of Silicon Valley Bank, NFTs could be used to promote the bank’s services and attract new customers.

NFTs can also be used to generate revenue for the bank, as they can be sold on the open market. This could help the bank recover some of its losses and provide a much-needed boost to its finances.

Twitter nft marketing is another potential solution. This involves using Twitter to promote NFTs related to the bank, which could help to generate interest and attract customers.

Finally, a web3 agency could be hired to help with the marketing and promotion of NFTs related to the bank. This could help to increase awareness of the bank’s services and attract more customers.

The collapse of Silicon Valley Bank has created a unique challenge for regulators and investors alike. While Yellen and other regulators are working to protect depositors, there are still many questions as to how best to handle the situation. NFT marketing, Twitter nft marketing, and the hiring of a web3 agency are all potential solutions that could help the bank recover from its losses and provide a much-needed boost to its finances.