Assessment: Secretary Yellen leaves us wondering if only woke banks with Biden mega-donors will be considered ‘systemic risk’ to the financial system …
- Treasury Secretary Janet Yellen told senators that government refunds of uninsured deposits will not be extended to every bank that fails, only those that pose systemic risk to the financial system.
- Yellen has been at the center of an emergency program to refund billions of dollars in uninsured deposits held by clients of the failed Silicon Valley Bank and the shuttered Signature Bank.
- But with markets recovering somewhat, lawmakers were concerned these backstops could become a new norm for big banks, giving “too big to fail” banks an unfair advantage over community lenders.
“… And do not harm the oil and wine” Revelation 6:6
Treasury Secretary Janet Yellen sought to reassure markets and lawmakers on Thursday that the federal government is committed to protecting U.S. bank deposits following the failure of Silicon Valley Bank and Signature Bank over the weekend.
“Our banking system remains sound and Americans can feel confident that their deposits will be there when they need them,” Yellen said.
Under questioning, however, Yellen admitted that not all depositors will be protected over the FDIC insurance limits of $250,000 per account as they did for customers of the two failed banks.
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