McCarthy: Admin 'Has the Tools' to Handle SVB Collapse

House Speaker Kevin McCarthy said Sunday he's spoken with the Biden administration about the collapse of Silicon Valley Bank, and he knows that Federal Reserve Chairman Jay Powell and Treasury Secretary Janet Yellen "have the tools to handle the current situation," but he thinks another bank could eventually buy out the company.

"They do know the seriousness of this and they are working to try and come forward with some announcement before the markets open," the California Republican told Fox News's "Sunday Morning Futures" host Maria Bartiromo. "I'm hopeful something can be announced today."

Silicon Valley Bank, he added, "is a unique bank where they have assets, they have an amazing clientele, and something possible is for someone to purchase this bank."

The best outcome will be to "move forward and cool the market and let people understand that we can move forward in the right manner," said McCarthy. 

Yellen said in an interview Sunday with CBS's "Face the Nation" that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money and that the current situation is far different from the financial crisis almost 15 years ago, in which bank bailouts were ordered to protect the industry.

Bartiromo pointed out that there is a "lot of nervousness" after billionaire Bill Ackman, the CEO of Pershing Square Capital Management, tweeted a warning that a "giant sucking sound" with the withdrawals of "substantially all uninsured deposits" from all banks if the government doesn't guarantee all of SVB's deposits before the markets open Monday. 

McCarthy, though, said there is a "great potential" of a larger banking corporation buying out SVB. 

"It's something they should look at," he said. "Silicon Valley Bank has a lot of assets; it's just where the capital is currently at. It is attractive for someone wanting to purchase it. It's just the time timeline where to move forward. The administration has tools to deal with that and I wouldn't live off of somebody putting something on Twitter. Let the actions of the administration take work here before anybody goes to any positions in their own bank."

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