In the past 10 days, federal regulators have used an emergency measure to guarantee the deposits of Silicon Valley Bank and Signature Bank, initiated a new Federal Reserve program to make sure other banks could secure funds to meet the needs of their depositors and coordinated with 11 big banks that deposited $30 billion into First Republic.Yellen added: “The situation is stabilizing. The comments come as government officials contemplate additional options to stem the flows of deposits out of small and medium-sized banks. Yellen said recent federal actions after the failure of Silicon Valley Bank and Signature Bank were intended to show the Biden administration was dedicated to protecting the system’s integrity and that deposits were secure.“And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.” Yellen said in prepared remarks to be delivered to the Washington meeting of the American Bankers Association, the industry’s leading lobbying group. “Our intervention was necessary to protect the broader U.S.financial system faces its worst turmoil in over a decade. She expressed confidence in the nation’s banks, seeking to calm nerves as the U.S. Treasury Secretary Janet Yellen pledged that the Biden administration would take additional steps to support the banking system. Ready to Protect Banks ( NYT ) Explained:
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