The department continues support for banks, advocates for regulation updates
Secretary of the Treasury Janet Yellen said that she believes that the financial sector is beginning to recover from the failure of several large banks in the last two weeks. Silicon Valley Bank and Signature Bank both collapsed on March 10, causing bank runs. The Federal Reserve shut down the banks to prevent more withdrawals from occurring and spent $212 billion to rescue the banks, granting them a new line of credit to keep money flowing.
“The Fed facility and discount window lending are working as intended to provide liquidity to the banking system. Aggregate deposit outflows from regional banks have stabilized,” Secretary Yellen said. She also admitted that these bank failures point to systemic weaknesses in U.S. financial policies. “We will need to reexamine our current regulatory and supervisory regimes and consider whether they are appropriate for the risks that banks face today,” she said.
As the Lord Leads, Pray with Us…
- For Secretary Yellen to seek God’s wisdom as she heads the Treasury Department.
- For U.S. treasury officials as they assess the regulatory status of banking in the nation.
- For Chairman Gruenberg and the FDIC board as they evaluate the insurance needs of U.S. banks.
Sources: AP, The Hill
