Treasury Secretary Janet Yellen on Tuesday sought to calm worries over the well being of the banking system, saying the federal government might increase the assure of deposits if mandatory.
In remarks ready for a speech to the American Bankers Affiliation, Yellen described the banking system as “sound” and stated actions already taken by authorities have been “stabilizing the system.”
“The steps we took were not focused on aiding specific banks or classes of banks. Our intervention was necessary to protect the broader U.S. banking system,” Yellen stated. “Similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”
The feedback have been launched Tuesday morning previous to the opening of U.S. markets, hours earlier than they’re anticipated to be delivered.
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