WASHINGTON — A week after the second-largest bank collapse in U.S. history, Treasury Secretary Janet Yellen informed the Senate Finance Committee on Thursday that the country’s banking system “remains sound” and Americans “can feel positive” about their deposits.
Yellen is the veryfirst Biden administration authorities to face legislators over the choice to secure uninsured cash at 2 stoppedworking local banks, a relocation that some Republicans haveactually slammed as a bank “bailout.”
“The federalgovernment took definitive and powerful actions to enhance public self-confidence” in the U.S. banking system, Yellen stated in statement priorto the committee. “I can assure the members of the Committee that our banking system stays sound, and that Americans can feel positive that their deposits will be there when they requirement them.”
In less than a week, Silicon Valley Bank, based in Santa Clara, California, stoppedworking after depositors hurried to withdraw cash amidst stressandanxiety over the bank’s health. Then, regulators assembled over the weekend and revealed that New York-based Signature Bank likewise stoppedworking. They guaranteed all depositors