In an address to banking leaders on Tuesday, Treasury Secretary Janet Yellen said the U.S. was prepared for future banking rescues.
“Similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion,” she said. “I believe that our actions reduced the risk of further bank failures that would have imposed losses on the Deposit Insurance Fund, which is paid for through fees on insured banks.”The White House indicated that taxpayers would not finance the rescues this time around.
“Our banking system is sound even as it has come under some pressure,” Yellen said. “This is different from 2008.”In that case, Yellen said, banks had sub-prime assets that caused them to fail. This time, she said banks were stressed by massive outflows, meaning customers with large accounts were making large withdrawals.
“Banks, of course, need access to liquidity when they face massive outflows. That was the reason, the motivation for the founding of the Fed. We need to make sure the Fed provides banks with the liquidity they need,” Yellen said. Earlier this month, regulators seized Silicon Valley Bank and New York-based Signature Bank. The two seizures resulted in two of the three largest bank failures in U.S. history. Also, 11 major banks announced a combined $30 billion in uninsured deposits to keep First Republic Bank afloat.
The Federal Deposit Insurance Corporation insures deposits of up to $250,000. Had the FDIC not taken action, those with more than $250,000 were at risk of losing their accounts.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
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.
続きを読む »
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.”
続きを読む »
US Treasury Sec. Yellen: New Fed facility working to provide liquidity to banking systemThe Federal Reserve's new Bank Term Funding facility and discount window lending are working to provide liquidity to the banking system, US Treasury S
続きを読む »
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.
続きを読む »
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.
続きを読む »
FLASHBACK: Treasury Sec. Yellen didn't 'believe' she’d see another financial crisis in her lifetimeTreasury Secretary Janet Yellen in 2017 remarked that she did not believe another financial crisis like the 2008 crash and Great Recession would happen again in our lifetime.
続きを読む »