Yellen says U.S. banking system is ‘steady’ and deposits ‘stay protected’ following failure of SVB, Signature
WASHINGTON — Treasury Secretary Janet Yellen sought to reassure markets and lawmakers on Thursday that the federal authorities is dedicated to defending U.S. financial institution deposits following the failure of Silicon Valley Bank and Signature Bank over the weekend.
“Our banking system remains sound and Americans can feel confident that their deposits will be there when they need them,” Yellen stated.
Yellen has been on the middle of emergency federal efforts this previous week to return deposits to account holders at two failed banks, the California-based Silicon Valley Bank and the crypto-heavy Signature Bank, primarily based in New York.
To shore up troubled banks dealing with a surge in money withdrawals, the Federal Reserve additionally created a brand new lending program that Yellen stated would “provide additional support” to the banking system. “This will help financial institutions meet the needs of all of their depositors.”
“This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe,” Yellen instructed the senators.
Democrats and Republicans in Congress have largely supported the emergency actions, however as markets recuperate considerably, lawmakers have begun questioning whether or not the backstops will turn into a brand new norm.
“I’m concerned about the precedent of guaranteeing all deposits and the market expectation moving forward,” stated Sen. Mike Crapo, R-Idaho.
This is a creating story, please examine again for updates.
