The comments, made at a banking conference Tuesday, were intended to stress the U.S. commitment to protect the U.S. banking system – and the customers who trust their money in it.
Treasury Secretary Janet Yellen said that depositors at small banks could be eligible for the same kind of protection extended to customers at two regional banks that failed this month. Yellen made the remarks at a speech she delivered to the American Bankers Association on March 21, 2023.
to guarantee all deposits at Silicon Valley Bank and Signature Bank, which collapsed when panicked depositors moved to withdraw their money."Similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion," Yellen said in a speech to the American Bankers Association.
The Federal Reserve also set up a new lending program to help banks cover withdrawals, so they don't have to sell assets at fire-sale prices. "Every step we have taken has been intended to reassure the public that our banking system is resilient," Yellen said, adding that the government's emergency measures are working.Justin SullivanPeople line up outside of a Silicon Valley Bank office in Santa Clara, Calif., on March 13, 2023, the day after regulators swept in to protect depositors at the failed lender. Despite the emergency action, panicked depositors sought to withdraw money from smaller and regional lenders.
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