Yellen rules out bailout

US Treasury Secretary Janet Yellen yesterday said she was working closely with banking regulators to respond to the collapse of SVB and protect depositors, but a major bailout was not being considered.

Yellen told the CBS News "Face the Nation" show that she had been working with regulators to "design appropriate policies to address the situation," but declined to give further details.

Her comments came as the US Federal Reserve said it will hold a closed-door meeting of its board of governors under expedited procedures today.

The morning meeting will primarily review and determine the advance and discount rates to be charged by the Federal Reserve banks, it said.

The central bank offered no further details.

Fed and Federal Deposit Insurance Corp briefed California's congressional delegation on the SVB collapse on Saturday night.

The Treasury Department was to brief lawmakers separately yesterday.

These briefings were being held to determine what action the US government should take to prevent contagion following SVB's collapse.

Sources report that the FDIC and the Fed are considering creating a fund to support deposits in troubled banks.