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Treasury Secretary Yellen says the government could backstop more deposits if necessary to stop contagion
CNBC ^ | March 21, 2023 | by Jeff Cox

Posted on 03/21/2023 4:52:23 AM PDT by Oldeconomybuyer

Treasury Secretary Janet Yellen said Tuesday the government is ready to provide further guarantees of deposits if the banking crisis worsens.

In remarks prepared for a speech to the American Bankers Association, the former Federal Reserve chair said authorities believe they have taken appropriate actions to stem liquidity problems in the sector, but will do more if needed.

“The steps we took were not focused on aiding specific banks or classes of banks. Our intervention was necessary to protect the broader U.S. banking system,” Yellen said. “And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”

“The situation is stabilizing. And the U.S. banking system remains sound,” Yellen said. “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.”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: bankruptcy; banks; boondoggle; transitory; yellen
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To: Diogenesis

Y-you mean I DON’T have more than $250,000 in the bank? Say it ain’t so!


21 posted on 03/21/2023 6:24:05 AM PDT by Eleutheria5 (Every Goliath has his David. )
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To: Alberta's Child

That isn’t a new problem and has already been solved. Multiple ways to handle that. DIF banks network, intrafi, ncu insurance etc. Risks are risks.


22 posted on 03/21/2023 6:24:39 AM PDT by Theoria
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To: Oldeconomybuyer

Soon she’ll say that if Government controlled all bank accounts it would work a lot better ,LOL


23 posted on 03/21/2023 6:25:03 AM PDT by butlerweave
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To: Theoria
I used the example of a home sale because it's relevant to many ordinary people. The challenge is much bigger than that.

The problem is that the $250,000 limit doesn't help nearly as much when you're dealing with large accounts that serve transactional purposes. A more serious problem involves businesses that might be dealing with transactions far in excess of that $250,000 on a much more frequent basis. A business with as few as 50 employees, for example, probably needs at least $250,000 just to process a payroll run every two weeks.

This last example is what really motivated the U.S. Treasury and the Federal Reserve to "backstop" banks like SVB and Signature. Ford Motor Company, for example, has something like 88,000 employees in the U.S. How many bank accounts would they need just to process their payroll every two weeks? We worked this out on another thread and came up with something like 1,800-2,000 bank accounts. That would be preposterous.

24 posted on 03/21/2023 6:32:54 AM PDT by Alberta's Child ("I've just pissed in my pants and nobody can do anything about it." -- Major Fambrough)
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To: Oldeconomybuyer

Yellen another feeble minded parasite in the Biden tribe of fools and idiots.


25 posted on 03/21/2023 6:44:24 AM PDT by Vaduz (LAWYERS )
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To: Eleutheria5

How ironic that everyone’s worried about depositors who have millions of dollars in banks, when surveys indicate that 40% or more of adults don’t have enough cash to cover a $400 car repair bill.

Yellen babbles on about “systemic threats” but the underlying problems in America go so much deeper.


26 posted on 03/21/2023 7:20:30 AM PDT by Deo volente ("When we see the image of a baby in the womb, we glimpse the majesty of God's creation." Pres. Trump)
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To: Deo volente
How ironic that everyone’s worried about depositors who have millions of dollars in banks, when surveys indicate that 40% or more of adults don’t have enough cash to cover a $400 car repair bill.

Most Americans shouldn't be worried about their own bank deposits.

They should be worried about their employers' bank deposits.

27 posted on 03/21/2023 7:36:16 AM PDT by Alberta's Child ("I've just pissed in my pants and nobody can do anything about it." -- Major Fambrough)
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To: Deo volente

Ironic that a dyed-in-the-wool communist educated in Soviet Moscow, is so worried about the fat cats’ money. Let this be a lesson to you, young man, as Beaver’s father would say. If you have more than $250,000, don’t keep it all in one account or one bank. Duh.


28 posted on 03/21/2023 8:19:19 AM PDT by Eleutheria5 (Every Goliath has his David. )
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To: Theoria

IF OPRAH really had $560 MILLION in SVB-—

WHAT bank wants to take her deposits next?????


29 posted on 03/21/2023 10:09:53 AM PDT by ridesthemiles
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