The US will extend protection to banks in the face of the financial situation
Treasury Secretary Janet Yellen assured that they will extend the protection to banks that are in conditions similar to those of Silicon Valley Bank
The United States Secretary of the Treasury, Janet Yellen, is considering expanding the protection of depositors from other small entities under conditions similar to those of the intervention of Silicon Valley Bank (SVB) and Signature Bank, when the guarantee was increased to 100 % of amounts deposited, against the limit of $250,000.
“The steps we took were not focused on helping specific banks or classes of banks. Our intervention was necessary to protect the American banking system in general,” Yellen said in remarks prepared for her address to the American Bankers Association.
In this sense, for the head of the United States Treasury, “similar actions could be justified if the smallest entities suffer deposit leaks that pose a risk of contagion”.
The SVB was intervened on March 10 by the US financial authorities and that weekend the Treasury Department ordered the Federal Deposit Insurance Corporation (FDIC) to guarantee the funds of the entity’s clients even above the insured limit of $250,000.
K. Tovar
Source: Gestion
(Reference image source: file)
Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram
