Yellen flags ‘contagious bank run’ risk
US Treasury secretary pledges small banks will gain 100% deposit insurance if needed
US Treasury secretary Janet Yellen sought to assuage fears of contagion and systematic risk in remarks on March 21, while acknowledging the severity of two recent US bank failures.
“This is different than 2008. 2008 was a solvency crisis,” said Yellen. “Rather what we’re seeing is contagious bank runs.” She described the government’s response to recent banking collapses as swift, decisive, and forceful, adding that the actions were meant to strengthen public confidence in banking.
Yellen said
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