US Treasury Secretary Janet Yellen has reiterated she is prepared to take further action to ensure Americans’ deposits stay safe amid banking system turmoil.
Yellen tries to assuage fears as US bank stocks slide
US Treasury Secretary Janet Yellen has sought to reassure jittery investors that American bank deposits are safe and promised policymakers have more firepower to battle any crisis even as bank stocks resumed their slide.
Investors have dumped banking stocks globally in the past two weeks, with rapid interest rate hikes to rein in inflation blamed by some as the root cause of the debacle.
US bank stocks slid again on Thursday, pushing the S&P 500 banks index down to its lowest close since November 2020.
US lender Silicon Valley Bank’s collapse over bond-related losses tied to a surge in interest rates was the initial trigger for the turmoil, and JPMorgan Chase & Co analysts estimate the “most vulnerable” US banks likely lost a total of about $US1 trillion ($A1.5 trillion) in deposits since last year.