Yellen says U.S. banking system is ‘stable’ and deposits ‘remain safe’

Yellen says U.S. banking system is 'stable' and deposits 'remain safe'

WASHINGTON — 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.

Yellen has been at the center of emergency federal efforts this past week to return deposits to account holders at two failed banks, the California-based Silicon Valley Bank and the crypto-heavy Signature Bank, based in New York.

To shore up troubled banks facing a surge in cash withdrawals, the Federal Reserve also created a new lending program that Yellen said would “provide additional support” to the banking system. “This will help financial institutions meet the needs of all of their depositors.”

“This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe,” Yellen told the senators.

Democrats and Republicans in Congress have largely supported the emergency actions, but as markets recover somewhat, lawmakers have begun questioning whether the backstops will become a new norm.

“I’m concerned about the precedent of guaranteeing all deposits and the market expectation moving forward,” said Sen. Mike Crapo, R-Idaho.

This is a developing story, please check back for updates.

CNBC Politics

Read more of CNBC’s politics coverage:

  • Yellen says U.S. banking system is ‘stable’ and deposits ‘remain safe’ following failure of SVB, Signature
  • Trump extends lead over DeSantis in new poll of possible GOP primary field
  • Trump super PAC accuses Ron DeSantis of ‘shadow’ presidential bid in ethics complaint
  • DOJ charges Chinese businessman Guo Wengui, associate of Steve Bannon, in $1 billion fraud
  • Pfizer will have to pay rebates to Medicare for five drugs under Biden plan to lower Rx costs
  • Top Senate Democrats press DOJ, SEC to investigate whether Silicon Valley Bank executives broke any laws
  • Apple, Amazon, Google will likely get a reprieve from GOP-controlled House on antitrust legislation
  • Warren unveils bill to repeal Trump-era bank deregulation she says led to SVB, Signature collapses
  • Chuck Schumer will give campaign donations from Silicon Valley Bank’s ex-CEO, PAC to charity
  • Biden announces new plans to curb gun violence, months after Lunar New Year mass shooting
  • Senate Democrats urge Walmart, Costco, Albertsons and Kroger to sell abortion pill mifepristone
  • Russian jet downs U.S. drone over Black Sea

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