On Thursday, Treasury Secretary Janet Yellen attempted to alleviate concerns among lawmakers and the financial markets by emphasizing the federal government’s dedication to safeguarding U.S. bank deposits after the recent collapse of Silicon Valley Bank and Signature Bank during the weekend.

“Our banking system remains sound and Americans can feel confident that their deposits will be there when they need them,” Yellen said, as reported by CNBC. 

When questioned, Yellen conceded that customers with deposits surpassing the FDIC insurance threshold of $250,000 per account, like those of the two failed banks, may not receive full protection.

Over the past week, Yellen has played a pivotal role in the federal government’s emergency initiatives to restore deposits for customers of two collapsed banks: California’s SVB and New York’s Signature Bank, which has a significant focus on cryptocurrencies.

Written by staff