Janet Yellen: SVB suffered bank run that led to liquidity problem

US Treasury Secretary Janet Yellen said on Thursday that Silicon Valley Bank had to be closed because of a liquidity risk that meant the bank could not meet depositors’ withdrawal requests, Report informs via Reuters.

“There was a liquidity risk in this situation,” Yellen told the Senate Finance Committee. “There will be a careful look at what happened in the bank and what initiated this problem, but clearly, the downfall of the bank, the reason it had to be closed was that it couldn’t meet depositors’ withdrawal requests.”