Bank savings ‘remain safe’ after Silicon Valley Bank collapse

Xavier Roger


Despite banking industry turmoil following Silicon Valley Bank’s collapse, Treasury Secretary Janet Yellen told lawmakers Thursday that the banking system “remains sound” and depositors’ savings “remain safe.

“I can assure the members of this Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen said in prepared testimony before the Senate Finance Committee.

Citing the steps regulators took in response to Silicon Valley Bank’s (SVB) failure, she added, “This week’s actions demonstrate our resolute commitment to ensure that depositors savings remain safe.”

U.S. Treasury Secretary Janet Yellen holds up a copy of the Treasury Departments Greenbook as she testifies during a House Ways and Means Committee hearing on Capitol Hill March 10, 2023 in Washington, DC.

Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation took action Sunday to guarantee that depositors of SVB and Signature Bank of New York, another failed bank, would have access to all their money, including amounts above the up to $250,000 insured by FDIC.

The regulators will provide funding and recover it through a special assessment on the banks.


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