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US treasury secretary supports government measures to prevent further banks from collapse

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TL;DR

  • U.S. treasury secretary Janet Yellen stated that if required, the federal government will step in to help other small lenders.
  • Yellen will defend recent government efforts as “decisive and strong moves” to safeguard the banks and the issue’s wider economic implications.
  • Joe Biden, the president of the United States, said that he is “firmly committed” to prosecuting those responsible for the most recent bank collapses.

Treasury secretary Janet Yellen said the federal government is willing to take action if required nearly two weeks after Silicon Valley Bank (SVB), Silvergate, and Signature collapsed.

U.S. regulators started developing a strategy immediately after the banking crisis, during which Yellen initially declared that no rescue would be required. Instead, the authorities at SVB and Signature guaranteed both insured and uninsured deposits. The U.S. Federal Reserve also introduced a brand-new method to assist lenders in covering withdrawals.

The failures of SVB and Signature Bank will be discussed at a meeting that Congress has called for on March 29.

Yellen will defend recent government actions as “decisive and forceful moves” in order to protect the banks and the larger economic impact of the issue.

According to a  speech to be delivered on Tuesday, Yellen said that government intervention was required to safeguard the larger US banking system, and analogous measures may be necessary if smaller institutions have deposit runs that raise the possibility of contagion.

In addition, she claimed that government action had preserved the “vital role” that small and midsize lenders play in the American economy.

“The Treasury is committed to ensuring the ongoing health and competitiveness of our vibrant community and regional banking institutions.”

US president on the recent collapse

President of the United States, Joe Biden, stated that he is “firmly committed” to bringing those responsible for the most recent bank collapses to justice. Moreover, He added that there would be “no expense to the taxpayer” in protecting depositors connected to SBV and Signature.

Both the Securities and Exchange Commission and the Department of Justice are allegedly conducting investigations into the incident. Around 186 American banks have been identified by economists as being vulnerable to failure.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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