Janet Yellen Prepared To Protect Smaller U.S. Banks
In a speech to the American Bankers Association, Treasury Secretary Janet L. Yellen expressed confidence in the nation’s banks but also said she was prepared to take additional action to safeguard smaller financial institutions, as the Biden administration and federal regulators worked to contain fallout from fears over the stability of the banking system.
She stated that the situation was stabilizing, and the US banking system remained sound. However, Yellen also underscored the gravity of the current situation, stating that the stresses to the banking system still constituted a crisis, and pointed to the risk of bank runs spreading. Yellen said recent federal actions after the failure of Silicon Valley Bank and Signature Bank this month were intended to show that the Biden administration was dedicated to protecting the integrity of the system and ensuring that deposits were secure.