- Treasury Secretary Janet Yellen’s recently announced policy to safeguard all uninsured deposits at failing banks deemed to be a “systemic risk” to the U.S. economy would destroy smaller financial institutions while simultaneously bailing out Chinese depositors, experts told the Daily Caller News Foundation.
- Yellen, alongside the Federal Deposit Insurance Corporation and Federal Reserve, announced Sunday that all uninsured depositors who held accounts at the now-defunct Silicon Valley Bank (SVB) and Signature Bank would be fully covered, adding that “decisive actions” were needed to “protect the U.S. economy.”
- SVB was particularly popular among Chinese tech startups, as it provided easy access to U.S. investor funding, CNBC reported.
Yellen’s ‘Arbitrary’ Bank Bailout Rescues Chinese Startups, Jeopardizes Small Banks: Experts
WASHINGTON, DC - SEPTEMBER 22: U.S. Treasury Secretary Janet Yellen speaks at the Atlantic Festival on September 22, 2022 in Washington, DC. Yellen spoke on fiscal policy and the Biden Administration's plan to flight inflation and the slowing economy. (Photo by Kevin Dietsch/Getty Images)
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