![]() In its joint statement, the Department of the Treasury, the Federal Reserve and FDIC said measures were being taken to address the closure of another bank. "The goal always of supervision and regulation is to make sure that contagion can't occur." "We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," she said. Yellen, though, said financial regulators are working to prevent the fallout from spreading to other institutions. Still, Silicon Valley Bank's shutdown has prompted nervousness about whether it could trigger a run on other small and regional banks. So Americans can have confidence in the safety and soundness of our banking system." "In the aftermath of the 2008 financial crisis, new controls were put in place, better capital and liquidity supervision, and it was tested during the early days of the pandemic and proved its resilience. "The American banking system is really safe and well-capitalized. The FDIC, she said, is likely considering a "range of available options" to stabilize the situation, which could include an acquisition by a foreign bank. Yellen said that in the wake of Silicon Valley Bank's failure, Treasury officials have been hearing from depositors, many of which are small businesses, and she has been working with bank regulators to "design appropriate policies" to address the situation, though she declined to provide further details. Gavin Newsom about Silicon Valley Bank and the federal response on Saturday, and the FDIC spoke with members of the California congressional delegation late Saturday night. President Biden spoke with California Gov. "This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy." The Federal Reserve on Sunday also announced the creation of a new Bank Term Funding Program (BTFP) to make additional funding available "to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors," according to a press release. Treasury Secretary Janet Yellen on "Face the Nation" on March 12, 2023. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer," according to a joint statement released by the agencies. "Depositors will have access to all of their money starting Monday, March 13. On Sunday, the Department of the Treasury, the Federal Reserve and FDIC said the government will be guaranteeing deposits for SVB account holders. Transcript: Treasury Secretary Janet Yellen on "Face the Nation".But we are concerned about depositors and are focused on trying to meet their needs." "And the reforms that have been put in place means that we're not going to do that again. "During the financial crisis, there were investors and owners of systemic large banks that were bailed out," Yellen said in an interview with "Face the Nation" on Sunday. Washington - Treasury Secretary Janet Yellen said Sunday that the federal government will not provide a bailout for Silicon Valley Bank's investors after the bank was abruptly shuttered, but said financial regulators are "concerned" about the impact to depositors and working to address their needs. ![]()
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