Yellen pledges to protect bank deposits and prevent contagion.

Treasury Secretary Janet Yellen expressed confidence in the US banking system but said she was prepared to take additional action to safeguard smaller financial institutions as the Biden administration and federal regulators worked to contain fallout from fears over the stability of the banking system. Yellen said the steps the administration and federal regulators had taken so far had helped restore confidence, but policymakers were focused on making sure that the broader banking system remained secure.