U.S. Treasury Secretary Janet Yellen said Friday she’s tracking Silicon Valley Bank’s problems as it deals with big losses.
“You mentioned Silicon Valley Bank,” Yellen said, as she responded to a lawmaker while testifying before the House Ways and Means Committee.
“There are recent developments that concern a few banks that I’m monitoring very carefully, and when banks experience financial losses, it is and it should be a matter of concern.”
The stock of Silicon Valley Bank parent company SVB Financial Group SIVB,
SVB is seeking a buyer after scrapping a plan to shore up its finances through a stock offering, and as it faces widespread customer withdrawals, according to a Wall Street Journal report citing unnamed sources.
Related: SVB Financial is trying to sell itself: CNBC
Billionaire hedge fund manager Bill Ackman has suggested that government intervention could be needed.
“If private capital can’t provide a solution, a highly dilutive government preferred bailout should be considered,” Ackman said on Twitter.
Now read: SVB extends swoons on bank-run fears and analyst downgrades as it triggers bank-stock losses
Plus: 10 banks that may face trouble in the wake of the SVB Financial Group debacle
