The nation’s government aims to prevent the difficulties at the crisis bank SVB from getting worse, according to Treasury Minister Janet Yellen. He did not, however, consider rescuing the bank.

According to sources cited by Bloomberg, the Federal Reserve System (Fed) and the Federal Deposit Insurance Corporation (FDIC) of the United States are thinking of creating a new fund.

The explanation is due to Silicon Valley Bank’s failure (SVB). Both the Fed and the FDIC exist to lessen panic.

The fund’s goal is to lessen the impact on other institutions.

The Fed and the FDIC have not given Bloomberg any confirmation on the topic.

Bloomberg reports that the FDIC has discussed the financial status of small and medium-sized US banks. First Republic Bank is one such institution.

On Monday, the Fed will meet behind closed doors. The Fed has not stated why it is meeting.

Silicon Valley Bank was taken over by the US banking regulator on Friday after it experienced a severe financial crisis.

According to US Treasury Secretary Janet Yellenin, the government does not want SVB’s issues to worsen. He did not, however, consider rescuing the bank.

Yellen stated that the government wants to make sure that the issues of one bank do not spread to institutions that are healthy in an interview with the television network CBS.

According to CNBC, venture capitalists have tweeted for the federal government to get involved in the situation.

The concern is that the banking industry will become distrustful as a result of SVB’s failure. Medium-sized banks are specifically the target of suspicion.

SVB focuses on new businesses. There is concern that a bank failure in the US may result in a wave of startup job losses.

SVB:n Many regions of the world have been keeping an eye on the issue. On Thursday and Friday, bank shares fluctuated in the US and Europe.

The fall of SVB, according to Yuan Yawei’s assessment to Reuters, may have a negative psychological effect on the Chinese market, even though it is unlikely to trigger a new financial crisis. At Water Wisdom Asset Management, Yawei oversees hedge funds.

The Times of New York

That is the second-largest bank failure in US history, according to the article.