Yellen, situation stabilizes, US banking system solid

“The situation is stabilizing. The US banking system remains solid.” This was stated by Treasury Secretary Janet Yellen speaking at the American Banker Association. Yellen explains how at the moment it is still “too early to decide” on any changes to the rules, invoked by many to avoid the repetition of a new Silicon Valley Bank.

The US is ready to step in to protect smaller banks with drastic actions such as the recent ones taken for Silicon Valley Bank and Signature Bank, for which all deposits have been insured. Janet Yellen says so, according to excerpts from the speech she later gave to the American Banker Association. “Our intervention was necessary to protect the banking system and similar actions could be warranted if smaller banks are subject to a flight of deposits that poses the risk of contagion,” Yellen says.

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