Treasury Secretary Janet Yellen will seek to reassure lawmakers about the US banking system’s stability on Thursday after the collapse of Silicon Valley Bank and trouble at Credit Suisse stoked fears of economic contagion.
Yellen is set to tout the federal government’s “decisive and forceful” actions to shore up the banking sector while testifying before members of the Senate Finance Committee.
“I can reassure the members of the 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 remarks.
“This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe,” Yellen added in the remarks.
Yellen’s prepared remarks notably omitted a mention of the turmoil at Credit Suisse, which appeared close to collapse this week after executives admitted to “material weaknesses” in financial reporting.
Credit Suisse rebounded slightly after the Swiss National Bank extended a $54 billion credit line — though investors remain anxious about its ability to survive the crisis.
The Treasury secretary will speak days after the feds stepped in to guarantee deposits at SVB and Signature Bank of New York. The bailout was meant to bolster confidence in the banking system and stave off the possibility of a nationwide run on banks.
Nevertheless, stock in banks large and small remained under pressure this week due to lingering uncertainty about the financial outlook.
With Post wires
[Written in collaboration with other media outlets with information from the following sources]
