Yellen says US banking system is “stable” and deposits “remain safe” after SVB, Signature, failed

WASHINGTON – Treasury Secretary Janet Yellen on Thursday tried to reassure markets and lawmakers that the federal government is committed to protecting U.S. bank deposits after the collapse of Silicon Valley Bank and Signature Bank over the weekend.

“Our banking system remains solid and Americans can rest assured that their deposits will be there when they need them,” Yellen said.

Yellen has been at the center of the federal emergency effort over the past week to repay deposits to account holders at two failing banks, California-based Silicon Valley Bank and crypto-heavy New York-based Signature Bank.

To prop up troubled banks facing a surge in cash withdrawals, the Federal Reserve also created a new lending program that Yellen said would provide “additional support” to the banking system. “This will help financial institutions meet the needs of all their depositors.”

“This week’s actions demonstrate our unwavering commitment to keeping depositors’ savings safe,” Yellen told senators.

Democrats and Republicans in Congress have largely backed the emergency measures, but as markets recover somewhat, lawmakers have begun to question whether the backstops will become a new norm.

“I’m concerned about the precedent for guaranteeing all deposits and market expectations going forward,” said Sen. Mike Crapo, R-Idaho.

This is an evolving story, please keep checking back for updates.

CNBC Policy

Read more about CNBC’s political coverage:

  • Yellen says US banking system is “stable” and deposits “remain safe” after SVB, Signature, failed
  • Trump extends lead over DeSantis in new poll on possible GOP primary
  • Trump Super PAC accuses Ron DeSantis of ‘shadow’ presidential bid in ethics complaints
  • The DOJ is charging Chinese businessman Guo Wengui, associate of Steve Bannon, with $1 billion in fraud
  • Pfizer has to pay Medicare rebates for five drugs under the Biden plan to reduce Rx costs
  • Leading Senate Democrats are urging DOJ and SEC to investigate whether Silicon Valley Bank executives broke laws
  • Apple, Amazon and Google are likely to get a reprieve from the GOP-controlled house over antitrust legislation
  • Warren unveils bill to reverse Trump-era banking deregulation that she says led to the collapse of SVB and Signature
  • Chuck Schumer will donate campaign donations from ex-CEO of Silicon Valley Bank, PAC, to charity
  • Biden announces new plans to curb gun violence, months after the Lunar New Year mass shootings
  • Senate Democrats are asking Walmart, Costco, Albertsons and Kroger to sell the abortion pill mifepristone
  • Russian jet crashes US drone over Black Sea

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