Yellen Tells Lawmakers That The American Banking System ‘Remains Sound’ After Two Banks Collapse

Treasury Secretary Janet Yellen told lawmakers on Thursday morning that the American financial system “remains sound” despite two recent bank failures.

The Federal Deposit Insurance Corporation (FDIC) presently manages the $212 billion in assets maintained by Silicon Valley Bank, which state regulators in California closed on Friday, in order to strengthen confidence in the financial system. Similar actions were taken for the $110 billion in assets maintained by Signature Bank in New York, which was closed on Sunday.

Yellen, originally scheduled to testify on the budget proposal submitted last week by President Joe Biden, started her remarks by informing lawmakers that the Treasury Department, the Federal Reserve, and the FDIC successfully protected the deposits of the two failed banks.

“I can reassure the members of the Committee that

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