Saturday, April 1, 2023

Yellen: Yellen refuses to give relief package to SVB – Usky News



Washington: US Treasury Secretary Janet Yellen said on Sunday that it was working closely with banking regulators to respond to the collapse of Silicon Valley Bank ,svb) and protect depositors, but a larger bailout was not being considered.
Yellen told CBS News she was working with regulators to “design appropriate policies to deal with the situation,” but declined to provide details. “Let me be clear that during the financial crisis, there were investors and owners of systemically large banks who were bailed out… and the reforms that have been put in place mean we are not going to do that again,” yellen Said. “But we are concerned about depositors and are focused on trying to meet their needs,” she said.
The collapse of the bank has raised concerns about the ability of regional banks to operate and small businesses working with SVB to pay their employees. Yellen met with officials from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency, and she and White House officials expressed confidence in the banking regulators’ ability to respond.
Yellen stressed that the US bank system was safe and well-capitalised, given the new controls and capital requirements following the 2008 financial crisis, and was tested in the early days of the pandemic. “Americans can have confidence in the safety and soundness of our banking system,” Yellen said, adding that regulators wanted to make sure the crisis did not spread to other banks. The FDIC stepped in on Friday to protect deposits up to $250,000, but deposits above that amount — which account for 85% of SVB accounts — are at risk. Bloomberg

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