Treasury Secretary Janet Yellen told lawmakers Thursday that the nation’s banking system “remains sound” and that Americans shouldn’t worry about their deposits, a week after the second-largest bank collapse in U.S. history.
“I can reassure the members of the committee that our banking system remains sound and that Americans can feel confident that their deposits will be there when they need them,” she said.failed last week when depositors rushed to withdraw $42 billion in a single day and the bank couldn’t cover all the withdrawals. The Treasury Department, Federal Reserve and Federal Deposit Insurance Corp.
The Justice Department and the Securities and Exchange Commission are investigating the bank’s collapse. Critics have called the government’s rescue plan a bailout, although President Biden has insisted that taxpayer money is not being used. Republicans, including Sen. Michael Crapo of Idaho, pressed Ms.
on whether the bank faced a cash crunch because its long-term debt lost value after a series of inflation-fighting interest rate hikes by the Fed in the past year.• Dave Boyer can be reached at
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