Treasury secretary Janet Yellen has told a Senate committee that the US banking system is “sound” and defended the Biden administration’s actions to rescue depositors at two failed banks and thwart broader financial contagion.
Yellen was grilled by lawmakers on the Senate finance committee regarding the aggressive intervention by US regulators and officials on Sunday to guarantee all deposits at the collapsed Silicon Valley Bank and Signature Bank and set up a new Federal Reserve facility to provide liquidity to other banks.
“I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them,” Yellen said in her opening remarks. “This week’s actions demonstrate our resolute commitment to ensure that our financial system remains strong and depositors’ savings remain safe.”