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 ...
Y-you mean I DON’T have more than $250,000 in the bank? Say it ain’t so!
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.
Soon she’ll say that if Government controlled all bank accounts it would work a lot better ,LOL
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.
Yellen another feeble minded parasite in the Biden tribe of fools and idiots.
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.
Most Americans shouldn't be worried about their own bank deposits.
They should be worried about their employers' bank deposits.
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.
IF OPRAH really had $560 MILLION in SVB-—
WHAT bank wants to take her deposits next?????
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