This is Janet Yellen’s Latest Statement on the US Bank Crisis

International

Jakarta, CNBC Indonesia – US Treasury Secretary Janet Yellen said President Joe Biden’s government could take “additional action” if needed to stabilize banks. He emphasized this before a panel of the US House of Representatives, Thursday (23/3/2023) local time.

This, he said, was done to support Silicon Valley Bank and Signature Bank customers in the future. Previously, both banks were declared bankrupt two to two weeks ago.

“We’ve used an important tool to act quickly to prevent these incidents from spreading. And it’s a tool we can use again,” Yellen said, quoted CNBC International.

“The robust actions we have taken ensure that Americans’ savings are safe. Of course, we will stand ready to take additional action if needed,” he stressed.

Yellen’s new statement comes amid increasing market concern over small and medium regional banks which have experienced a rush of customer “drawbacks” following the collapse of the SVB. Including, the question as to whether the federal government is ready to support these banks.

In Washington, Yellen drew criticism from lawmakers who argued the decision to insure deposits at SVB and Signature was a “gift” to big banks for taking on excessive risk. Meanwhile, lawmakers said smaller institutions were being forced to cope with a surge in deposit outflows, fueled by public fear of big banks, without special assistance.

(sef/sef)