“The steps we took were not focused on aiding specific banks or classes of banks,” the treasury secretary will tell the American Bankers Association on Tuesday.
Treasury Secretary Janet Yellen will tell bankers on Tuesday that the federal government will backstop deposits at smaller lenders if necessary as the Biden administration aims to reassure the public that the banking system is stable.
“And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”expand the Federal Deposit Insurance Corporation Treasury Secretary Janet Yellen is expected to tell bankers on Tuesday that the federal government will backstop withdrawals at smaller banks.The Republican House Freedom Caucus said in a statement the Federal Reserve “must unwind” its extraordinary funding facility created on March 12 that allows banks to boost borrowing from the Federal Reserve to cover deposit outflows.
“Due to decisive recent actions, the situation has stabilized, deposit flows are improving and Americans can have confidence in the safety of their deposits,” a Treasury Department spokesperson told Bloomberg.
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