After Silicon Valley Bank careened off a cliff last week, jittery venture capitalists and tech startup leaders pleaded with the Biden administration for help, but they made one point clear: “We are not asking for a bank bailout,” more than 5,000 tech CEOs and founders begged.
On the same day the U.S. government announced extraordinary steps to prop up billions of dollars of the bank’s deposits, Treasury Secretary Janet Yellin and President Biden hammered the same talking point: Nobody is being bailed out.
“This was not a bailout,” billionaire hedge-fund mogul Bill Ackman tweeted Sunday, after spending the weekend forecasting economic calamity if the government did not step in.
Yet according to experts who specialize in government bank bailouts, the actions of the federal government this weekend to shore up Silicon Valley Bank’s depositors are nothing if not a bailout.
Read more at NPR.org
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