.SecYellen said that the government could intervene to protect depositors at small banks if the fallout from SVB’s collapse keeps growing. 'Similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.'
Yellen made the comments in prepared remarks that she will deliver during an appearance before the American Bankers Association in Washington, D.C., on Tuesday. Yellen and other federal officials have been trying to shore up confidence in the U.S. banking system amid the SVB turmoil but have faced the criticism that they have bailed out larger banks at the expense of community banks."The steps we took were not focused on aiding specific banks or classes of banks.
Following the failures of both SVB and Signature Bank, the federal government has stepped in to guarantee that deposits at the two failed institutions will be able to receive all of their funds above the Federal Deposit Insurance Corporation’s $250,000 cap, calming the markets some. But as other regional banks, namely First Republic Bank, face public scrutiny, there have been some calls for the government to insure a wider range of deposits or even all bank deposits in order to prevent a broader financial crisis.
“I think the lifting the FDIC insurance cap is a good move,” Sen. Elizabeth Warren said over the weekend. “Now the question is where's the right number on lifting? But recognize that we have to do this, because these banks are underregulated, and if we lift the cap, we are requiring — or relying even more heavily on the regulators to do their jobs.
SVB's parent company filed for bankruptcy on Friday, exactly a week after the federal government announced the bank had failed. This week, the collapsed firm is being auctioned off in two different pieces.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Treasury Secretary Yellen says the government could backstop more deposits if necessary to stop contagionTreasury Sec. Yellen is defending the government’s intervention in the financial system and suggesting it could provide further guarantees of deposits if the banking crisis worsens. kaylatausche reports.
Les mer »
Treasury Secretary Janet Yellen says bank situation is ‘stabilizing’ and system is ‘sound’Treasury Secretary Janet Yellen is trying to project calm after regional bank failures, saying the U.S. banking system is “sound.”
Les mer »
Treasury Secretary Yellen expresses confidence in banking industryIn an address to banking leaders on Tuesday, Treasury Secretary Janet Yellen said the U.S. was prepared for future banking rescues.
Les mer »
Signature Bank taken over by Michigan-based Flagstar Bank after failureTreasury Secretary Janet Yellen has said the banking system 'remains sound' despite the recent bank failures.
Les mer »
Yellen defends government intervention to avoid another SVBAccording to the Treasury Secretary, the intervention was also aimed at preserving the “important role” of small to mid-size lenders in the U.S economy.
Les mer »
Yellen says U.S. banks ‘stabilizing’ after emergency actions by Treasury, regulatorsTreasury Secretary Janet Yellen says the U.S. banking system is “stabilizing” after the failure of two banks and the rescue of a third institution led to concerns of a broader crisis in the industry.
Les mer »