HomeEconomyJanet Yellen: SVB and Signature Bank pose 'serious risk of contagion'

Janet Yellen: SVB and Signature Bank pose ‘serious risk of contagion’

The US Treasury secretary believes that massive withdrawals by savers would have triggered a panic.

US Treasury Secretary Janet Yellen said on Thursday US authorities wanted to protect funds deposited by Signature Bank and Silicon Valley Bank (SVB) clients on Sunday because there was a “serious risk of contagion”.

“We considered that there was a serious risk of contagion from massive withdrawals” among clients who had funds in excess of the guaranteed amounts, “which could have brought down many banks and triggered panics,” Joe Biden’s Economy and Finance Minister declared before a Senate committee.

The US authorities announced on Sunday a series of measures to reassure individuals and companies about the soundness of the US banking system by guaranteeing the withdrawal of all deposits from the bankrupt Silicon Valley Bank (SVB).

>> More information to come on BFM Business in a few moments. Also watch BFM Business live on video and follow us On twitter.

Author: CO with AFP
Source: BFM TV

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