Treasury Secretary Yellen Holds Unscheduled Meeting With Top Financial Regulators Amid Turmoil in Banking Sector
U.S. Treasury secretary Janet Yellen initiated an unscheduled Financial Stability Oversight Council (FSOC) meeting with the country’s top financial regulators on Friday amid issues plaguing the U.S. banking sector. Banking stocks and all four U.S. benchmark indexes fell again on Friday as the government’s efforts last week failed to quell the country’s financial calamity. Janet Yellen Initiates Unscheduled Meeting With Country’s Top Financial Regulators
The U.S. banking sector remains in turmoil following the collapse of three major banks two weeks ago and the federal government’s measures to address the issues. On Friday afternoon, the four primary U.S. benchmark stock indexes are flat, and bank stocks from institutions like Truist, First Republic, Pacwest Bancorp, and Western Alliance Bancorp have dropped lower than the previous day’s close.
A report from Bloomberg states that U.S. Treasury secretary Janet Yellen has scheduled an unscheduled meeting with the country’s top financial executives and the FSOC. Yellen’s surprise meeting with the FSOC follows her recent commentary, where she said that the government’s recent intervention with Silicon Valley Bank and Signature Bank “was necessary to protect the broader U.S. banking system.” In a speech given to the American Bankers Association, Yellen further emphasized that “similar actions could be warranted.”
In the report by Bloomberg’s Christopher Condon, the meeting between Secretary Yellen and the FSOC is closed to the public, and the time of the event has not been disclosed. It is unclear what will come out of the meeting. Yellen also addressed the issue at the Senate Appropriations subcommittee, where she noted that Congress should review the Federal Deposit Insurance Corporation’s (FDIC) insurance methods. However, Yellen emphasized that she has “not considered or discussed anything having to do with blanket insurance or guarantees of deposits.”
Yellen stated that decisions would likely be made on a case-by-case basis if other banks fail and are deemed a “systemic risk exception.” She added that “we are likely to invoke the systemic risk exception, which permits the FDIC to protect all depositors, and that would be a case-by-case determination.” The unscheduled meeting with Yellen and the FSOC on Friday will include members of the U.S. Federal Reserve and several other financial regulatory agencies. Tags in this story Banking, benchmark, Bloomberg, collapse, Congress, deposit insurance, depositors, Exception, FDIC, federal government, Federal Reserve, financial stability, First Republic, indexes, institutions, intervention, Janet Yellen, Measures, meeting, Oversight Council, Pacwest Bancorp, Protect, Regulators, Regulatory Agencies, Signature Bank, Silicon Valley Bank, stocks, systemic risk, Truist, turmoil, Western Alliance Bancorp
What are your thoughts on the government’s recent interventions in the banking sector, and do you believe that they will be effective in stabilizing the system? Share your thoughts about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Moody"s Warns of Potential Financial Disruption Spillover Beyond US Banking Sector NEWS | 9 hours ago Terraform Labs CEO Do Kwon Faces Extradition to South Korea NEWS | 13 hours ago
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