{"id":1899284,"date":"2023-03-16T13:41:31","date_gmt":"2023-03-16T17:41:31","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse\/"},"modified":"2023-03-16T13:43:37","modified_gmt":"2023-03-16T17:43:37","slug":"yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse\/","title":{"rendered":"Yellen Tells Lawmakers That The American Banking System \u2018Remains Sound\u2019 After Two Banks Collapse"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fyellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1899284&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p> On Thursday morning, Janet Yellen, Treasury Secretary, told lawmakers that the American financial sector is in good shape. &#8220;remains sound&#8221; despite two recent bank failures.<\/p>\n<p>Federal Deposit Insurance Corporation (FDIC), currently manages $212 billion of assets held by Silicon Valley Bank. California state regulators closed the bank&#8217;s doors on Friday to increase confidence in the financial sector. Similar actions were taken to close Signature Bank&#8217;s $110 billion assets in New York on Sunday.<\/p>\n<p>Yellen, who was originally scheduled for testimony on the budget proposal last week by President Joe Biden&#8217;s, began her remarks by informing legislators that the Treasury Department (the Federal Reserve) and the FDIC had successfully protected the deposits of two bank failures.<\/p>\n<p>&#8220;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,&#8221; She commented. &#8220;This week&#8217;s actions demonstrate our resolute commitment to ensure that depositors&#8217; savings remain safe.&#8221;<\/p>\n<p>The economist said that Signature Bank and Silicon Valley Bank customers were also included. &#8220;able to access all of the money in their deposit accounts so they could make payroll and pay the bills&#8221; As of Monday morning. Deposit Insurance Fund provided the assets, which are funded by fees on banks. Federal officials didn&#8217;t protect shareholders or debtholders.<\/p>\n<p>&#8220;This week, the government took decisive and forceful actions to strengthen public confidence in our banking system,&#8221; Yellen said. &#8220;The Federal Reserve is providing additional support to the banking system with a new lending facility. This will help financial institutions meet the needs of all of their depositors.&#8221;<\/p>\n<p>Opening statements by Ron Wyden (D\u2013OR) and Mike Crapo (R\u2013ID), Senate Finance Committee Chair, were also influenced by the financial turmoil. &#8220;Nerves are frayed at the moment,&#8221; Wyden acknowledged Wyden to Yellen. &#8220;One of the most important steps the Congress can take now is make sure there are no questions about the full faith and credit of the United States.&#8221;<\/p>\n<p>Silicon Valley Bank announced last week a $1.75 Billion share sale. The company suffered severe losses due to the liquidation long-term assets within a $21 Billion bond portfolio. This raised concerns among startups and venture capital firms about the safety of their deposit accounts. Due to higher interest rates across the economy, the Federal Reserve&#8217;s actions to lower inflation had caused the portfolio to lose value.<\/p>\n<p>Yellen and Jerome Powell, Federal Reserve Chair, and Martin Gruenberg, Chairman of FDIC, made the observation in a statement Sunday that the banking system is &#8220;fragile&#8221;. &#8220;remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry.&#8221; They promised it &#8220;no losses&#8221; Silicon Valley Bank&#8217;s collapse would also be a result of its failure. &#8220;borne by the taxpayer.&#8221;<\/p>\n<p>Silicon Valley Bank had deposits that exceeded $250,000, and provided services to almost half of the venture-backed tech and healthcare companies in the United States. Silicon Valley Bank&#8217;s deposits were guaranteed by regulators so that the rest of the financial system (in which approximately half the deposits exceed $250,000) would be protected.<\/p>\n<p>&#8220;I am concerned about the precedent of guaranteeing all deposits and the market expectation moving forward,&#8221; Crapo said to Yellen, noting &#8220;rising interest rates&#8221; Inflation control efforts by the Federal Reserve are causing these changes &#8220;impacting household budgets, the federal government&#8217;s coffers, and, as we saw this week, our banking system.&#8221;<\/p>\n<p><\/p>\n<hr>\n<p>&#8220;From <a href=\"https:\/\/www.dailywire.com\/news\/yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse\">Yellen Tells Lawmakers That The American Banking System \u2018Remains Sound&#8217; After Two Banks Collapse<\/a>&#8220;<\/p>\n<hr>\n<p><span style=\"font-size:11px\"><em>&#8220;The views and opinions expressed here are solely those of the author of the article and not necessarily shared or endorsed by Conservative News Daily&#8221;<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Janet Yellen told lawmakers on Thursday morning that the American financial system \u201cremains sound\u201d despite two recent bank failures. The Federal Deposit Insurance Corporation (FDIC) presently manages the $212 billion in assets maintained by Silicon Valley Bank, which state regulators in California closed on Friday, in order to strengthen confidence in the financial<\/p>\n","protected":false},"author":99,"featured_media":1899285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[4123,14689,8961,7385,3673,8689,17069,4425,5286],"class_list":["post-1899284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire","tag-american","tag-banking","tag-banks","tag-collapse","tag-lawmakers","tag-remains","tag-sound","tag-tells","tag-yellen"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1899284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1899284"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1899284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1899285"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1899284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1899284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1899284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}