Yellen assures Congress of sound US banking system amid recent turmoil.

1 min read
Source: Reuters
Yellen assures Congress of sound US banking system amid recent turmoil.
Photo: Reuters
TL;DR

US Treasury Secretary Janet Yellen assured Americans that the US banking system is sound and that their deposits are safe. However, she denied that the emergency actions taken after the collapse of Silicon Valley Bank and Signature Bank meant that a blanket government guarantee now existed for all deposits. Yellen stated that a bank only gets that treatment if supermajorities of the boards of the Federal Reserve, the Federal Deposit Insurance Corp, and herself determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.

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