Treasury Sec. Yellen says gov. won't bail out Silicon Valley Bank investors, will protect clients

Treasury Secretary Janet Yellen on Sunday ruled out the possibility of a federal bailout for Silicon Valley Bank investors after government regulators abruptly shut down the financial institution.

"During the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we're certainly not looking. And the reforms that have been put in place means that we're not going to do that again," Yellen told CBS News' "Face the Nation" after the California Department of Financial Protection & Innovation closed down the Silicon Valley Bank on Friday.

"We are concerned about depositors and are focused on trying to meet their needs," Yellen said. 

CBS host Margaret Brennan followed up by asking whether depositors will be paid back in full because about 85% of Silicon Valley Bank accounts were uninsured.

Yellen said she would not comment on details surrounding the situation but said the government is "very aware of the problems that depositors will have."

The Federal Deposit Insurance Corporation took control of the bank over from California officials. However, the federal agency's insured limit is $250,000 per depositor, and many customers stored millions of dollars at Silicon Valley Bank. 

A joint statement from the Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation released Sunday evening announced that "depositors will have access to all of their money starting Monday, March 13."