US banks are stabilizing, says US Treasury Secretary
(VOVWORLD) - US Treasury Secretary Janet Yellen told bankers on Tuesday that she is prepared to intervene to protect depositors in smaller US banks suffering deposit runs that threaten more contagion amid the worst financial system turmoil in more than a decade.
 Janet Yellen, US Treasury secretary, speaks during a Senate Finance Committee hearing in Washington, on March 16, 2023. (Photo: AP) |
In a speech aimed at calming nerves rattled by two prominent bank failures this month, Yellen said that the US banking system was stabilizing and steps taken to guarantee deposits in those institutions, showed a “resolute commitment” to ensure depositors’ savings and banks remain safe.
“The steps being taken were not focused on aiding specific banks or classes of banks. The intervention was necessary to protect the broader U.S. banking system,” Yellen told an American Bankers Association conference in Washington.
“And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion,” she added in prepared remarks that drew a standing ovation from the assembled bankers after she delivered them.