03/16/2023

Yellen Says System is ‘Sound’

Markets are calm on Credit Suisse aid

This morning, Treasury Secretary Janet Yellen testified before U.S. lawmakers as the global financial system struggles for stability in the wake of Silicon Valley Bank's collapse and questions about Credit Suisse over its financial reporting.

Bank stocks have swung wildly this week since the Treasury Department and the Federal Reserve announced a sweeping intervention Sunday to protect SVB's depositors. On Wednesday, the Swiss National Bank said it would provide assistance to the giant multi-national Credit Suisse after the firm disclosed problems in its financial reporting — but said the bank still meets regulatory requirements for systematically important banks for now.

In response to questions about recent bank failures, Yellen told lawmakers that the FDIC "looked for buyers, and a merger acquisition is certainly something that they were open to as a way to resolve the institution."

Please select this link to read the complete article from The Washington Post.