Yellen's Evolving Stance on Bank Safety and Stability
US Treasury Secretary Janet Yellen has reassured Americans that the US banking system is safe, but has stopped short of guaranteeing all $19.2tn in US bank deposits. Yellen has indicated that further guarantees for uninsured deposits would come in the form of rescues for depositors of individual failing banks where problems threaten to spark runs on other banks. She has also said that bank regulators and the Treasury were prepared to make comprehensive deposit guarantees at other banks as they did at failed Silicon Valley Bank and Signature Bank. However, Yellen has faced criticism from investors for her reluctance to endorse a universal backstop to prevent depositors at small and mid-size banks from fleeing for perceived safety at large banks viewed as "too big to fail."
