On Sunday, Treasury Secretary Janet Yellen said the federal government would not bail out "investors and owners" of Silicon Valley Bank, which recently collapsed amid fears of financial industry contagion. Yellen noted that in the 2008 financial crisis, "there were investors and owners of systemic large banks that were bailed out" but said, "we're not going to do that again." She said the government is "concerned about depositors, and we're focused on trying to meet their needs," noting that the Federal Deposit Insurance Corporation (FDIC) was considering an acquisition of Silicon Valley Bank as one option. Yellen suggested there would not be ripple effects from the collapse, saying “the American banking system is really safe and well-capitalized, it's resilient.”
In response, Senator Mark Warner (D-Va.) said the best outcome would be for Silicon Valley Bank to find a buyer before Asian markets open late Sunday, and he expressed optimism. Meanwhile, some investors and Silicon Valley notables have pushed for more direct federal action, though Yellen maintained that the banking system is safe and sound. The FDIC started an auction for Silicon Valley Bank on Saturday, with bids due by Sunday afternoon. Companies including Roku, Roblox, and Circle held funds in SVB before it closed, and the tech sector had already faced layoffs over the last few months.