{"id":2412,"date":"2023-03-16T15:32:37","date_gmt":"2023-03-16T20:32:37","guid":{"rendered":"https:\/\/embarrdowns.com\/treasury-secretary-yellen-reassures-congress-u-s-banking-system-remains-sound\/"},"modified":"2023-03-16T15:32:38","modified_gmt":"2023-03-16T20:32:38","slug":"treasury-secretary-yellen-reassures-congress-u-s-banking-system-remains-sound","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/treasury-secretary-yellen-reassures-congress-u-s-banking-system-remains-sound\/","title":{"rendered":"Treasury Secretary Yellen Reassures Congress U.S. Banking System Remains Sound"},"content":{"rendered":"

Treasury Secretary Janet Yellen sought to reassure Congress Thursday that the U.S. banking system remains “sound” after the second largest bank collapse in its history.[0]<\/a><\/sup> Yellen testified before the Senate Finance Committee on President Biden\u2019s 2024 budget proposal.[1]<\/a><\/sup> <\/p>\n

After Silicon Valley Bank experienced a sudden failure and was taken over by the FDIC, Yellen praised the government’s “resolute and vigorous measures to reinstate public trust in our banking system” approximately one week ago. She asserted that the government’s measures display its dedication to safeguarding “depositors’ funds” and enabled bank customers to cover salaries and settle their bills.[2]<\/a><\/sup><\/p>\n

Senator Mike Crapo said he was ‘concerned about the precedent of guaranteeing all deposits and the market expectation expectation moving forward.’[3]<\/a><\/sup> Yellen responded that the government\u2019s response to the collapse of Silicon Valley Bank and Signature Bank were \u201cdecisive and forceful actions to strengthen public confidence in our banking system\u201d, and added that \u201cshareholders and debt holders are not being protected by the government. Importantly, no taxpayer money is being used or put at risk with this action. Deposit protection is provided by the Deposit Insurance Fund, which is funded by fees on banks.\u201d<\/p>\n

Yellen commented that the Treasury Department and other regulators had to step in with Silicon Valley Bank due to their awareness that such a collapse could cause a chain reaction and put other banks at risk.[4]<\/a><\/sup> On Tuesday, Moody’s bond credit rating agency downgraded the U.S. banking system and issued warnings of potential downgrades for six banks.[5]<\/a><\/sup><\/p>\n

Yellen also warned that \u201ca default on our debt would trigger an economic and financial catastrophe\u201d and urged Congress to address the debt limit \u201cwithout conditions and without waiting until the last minute.\u201d[6]<\/a><\/sup><\/p>\n

In conclusion, Yellen said that the government needs to \u201canalyze carefully what happened that triggered these bank failures and reexamine our rules and supervision and make sure that they\u2019re appropriate to address the risks that banks face.[7]<\/a><\/sup><\/p>\n

0. <\/span>“Yellen tells Congress that U.S. banking system is “sound”” Axios, 16 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/16\/yellen-congress-us-banking-system<\/a><\/a><\/p>\n

1. <\/span>“Janet Yellen news WATCH LIVE: Treasury Secretary testifies before Senate Finance Committee today” Washington Examiner, 16 Mar. 2023, https:\/\/www.washingtonexaminer.com\/policy\/economy\/yellen-testify-finance-committee<\/a><\/a><\/p>\n

2. <\/span>“Yellen on Watch for Banks Tightening Credit After SVB Meltdown” Yahoo Entertainment, 16 Mar. 2023, https:\/\/www.yahoo.com\/entertainment\/yellen-seeks-reassure-congress-banks-110000036.html<\/a><\/a><\/p>\n

3. <\/span>“Yellen seeks to reassure US legislators after bank collapse” Al Jazeera English, 16 Mar. 2023, https:\/\/www.aljazeera.com\/news\/2023\/3\/16\/yellen-seeks-to-reassure-us-legislators-after-bank-collapse<\/a><\/a><\/p>\n

4. <\/span>“Janet Yellen: US banking system is \u2018sound\u2019 despite two collapses in a week” The Guardian, 16 Mar. 2023, https:\/\/www.theguardian.com\/business\/2023\/mar\/16\/janet-yellen-us-banking-system-silicon-valley-signature-collapses<\/a><\/a><\/p>\n

5. <\/span>“Treasury Secretary Yellen to tell Congress ‘our banking system remains sound'” Yahoo News, 16 Mar. 2023, https:\/\/news.yahoo.com\/treasury-secretary-yellen-to-tell-congress-our-banking-system-remains-sound-110018961.html<\/a><\/a><\/p>\n

6. <\/span>“Yellen, House Republicans spar over tax increases, debt limit” Roll Call , 10 Mar. 2023, https:\/\/www.rollcall.com\/2023\/03\/10\/yellen-house-republicans-spar-over-tax-increases-debt-limit\/<\/a><\/a><\/p>\n

7. <\/span>“Yellen Open To Reexamining Bank Regs And Oversight After They Failed To Prevent SVB Collapse” TPM, 16 Mar. 2023, https:\/\/talkingpointsmemo.com\/news\/yellen-open-to-reexamining-bank-regs-and-oversight-after-they-failed-to-prevent-svb-collapse<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Treasury Secretary Janet Yellen sought to reassure Congress Thursday that the U.S. banking system remains “sound” after the second largest bank collapse in its history.[0]<\/a><\/sup> Yellen testified before the Senate Finance Committee on President Biden\u2019s 2024 budget proposal.[1]<\/a><\/sup> <\/p>\n

After Silicon Valley Bank experienced a sudden failure and was taken over by the FDIC, Yellen praised the government’s “resolute and vigorous measures to reinstate public trust in our banking system” approximately one week ago. She asserted that the government’s measures display its dedication to safeguarding “depositors’ funds” and enabled bank customers to cover salaries and settle their bills.[2]<\/a><\/sup><\/p>\n

Senator Mike Crapo said he was ‘concerned about the precedent of guaranteeing all deposits and the market expectation expectation moving forward.’[3]<\/a><\/sup> Yellen responded that the government\u2019s response to the collapse of Silicon Valley Bank and Signature Bank were \u201cdecisive and forceful actions to strengthen public confidence in our banking system\u201d, and added that \u201cshareholders and debt holders are not being protected by the government. Importantly, no taxpayer money is being used or put at risk with this action. Deposit protection is provided by the Deposit Insurance Fund, which is funded by fees on banks.\u201d<\/p>\n

Yellen commented that the Treasury Department and other regulators had to step in with Silicon Valley Bank due to their awareness that such a collapse could cause a chain reaction and put other banks at risk.[4]<\/a><\/sup> On Tuesday, Moody’s bond credit rating agency downgraded the U.S. banking system and issued warnings of potential downgrades for six banks.[5]<\/a><\/sup><\/p>\n

Yellen also warned that \u201ca default on our debt would trigger an economic and financial catastrophe\u201d and urged Congress to address the debt limit \u201cwithout conditions and without waiting until the last minute.\u201d[6]<\/a><\/sup><\/p>\n

In conclusion, Yellen said that the government needs to \u201canalyze carefully what happened that triggered these bank failures and reexamine our rules and supervision and make sure that they\u2019re appropriate to address the risks that banks face.[7]<\/a><\/sup><\/p>\n

0. <\/span>“Yellen tells Congress that U.S. banking system is “sound”” Axios, 16 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/16\/yellen-congress-us-banking-system<\/a><\/a><\/p>\n

1. <\/span>“Janet Yellen news WATCH LIVE: Treasury Secretary testifies before Senate Finance Committee today” Washington Examiner, 16 Mar. 2023, https:\/\/www.washingtonexaminer.com\/policy\/economy\/yellen-testify-finance-committee<\/a><\/a><\/p>\n

2. <\/span>“Yellen on Watch for Banks Tightening Credit After SVB Meltdown” Yahoo Entertainment, 16 Mar. 2023, https:\/\/www.yahoo.com\/entertainment\/yellen-seeks-reassure-congress-banks-110000036.html<\/a><\/a><\/p>\n

3. <\/span>“Yellen seeks to reassure US legislators after bank collapse” Al Jazeera English, 16 Mar. 2023, https:\/\/www.aljazeera.com\/news\/2023\/3\/16\/yellen-seeks-to-reassure-us-legislators-after-bank-collapse<\/a><\/a><\/p>\n

4. <\/span>“Janet Yellen: US banking system is \u2018sound\u2019 despite two collapses in a week” The Guardian, 16 Mar. 2023, https:\/\/www.theguardian.com\/business\/2023\/mar\/16\/janet-yellen-us-banking-system-silicon-valley-signature-collapses<\/a><\/a><\/p>\n

5. <\/span>“Treasury Secretary Yellen to tell Congress ‘our banking system remains sound'” Yahoo News, 16 Mar. 2023, https:\/\/news.yahoo.com\/treasury-secretary-yellen-to-tell-congress-our-banking-system-remains-sound-110018961.html<\/a><\/a><\/p>\n

6. <\/span>“Yellen, House Republicans spar over tax increases, debt limit” Roll Call , 10 Mar. 2023, https:\/\/www.rollcall.com\/2023\/03\/10\/yellen-house-republicans-spar-over-tax-increases-debt-limit\/<\/a><\/a><\/p>\n

7. <\/span>“Yellen Open To Reexamining Bank Regs And Oversight After They Failed To Prevent SVB Collapse” TPM, 16 Mar. 2023, https:\/\/talkingpointsmemo.com\/news\/yellen-open-to-reexamining-bank-regs-and-oversight-after-they-failed-to-prevent-svb-collapse<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2411,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2412"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2412"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2411"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}