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Federal Reserve Chair Janet Yellen has recently declared that the government will provide help to consumers of SVB Financial who have had their accounts frozen due to the recent cyberattacks.
As one of the leading financial institutions in the US, SVB Financial has provided financial services to numerous businesses, entrepreneurs and innovators. This week, a cybercriminal was able to infiltrate the bank’s system and freeze customer accounts.
Chair Yellen has announced in a statement that the Federal Reserve will do its best to help those affected. She said, “This is a serious incident that has had an impact on individuals who rely on these services for their livelihood. We will do everything we can to support those customers and ensure their funds are addressed in a prompt and secure manner.”
However, Chair Yellen has made it clear that the government will not provide a bailout to the bank due to the cyberattack. She said, “The Federal Reserve will not subsidize the losses caused by this breach; nevertheless, we are committed to doing whatever it takes to help restore trust and confidence in SVB Financial.”
The central bank has also stated that it is working closely with local and national authorities to investigate what happened. In the meantime, the Federal Reserve will provide additional guidance and resources to the financial institution.
With the government stepping in to provide assistance, it will be much easier for SVB Financial to recover from the attack. It is expected that the government will continue to provide support and guidance to the bank
