Treasury Secretary Janet Yellen suggested depositors at small banks might be eligible for the same kind of emergency government aid extended to customers at two regional banks that failed this month.
to guarantee all deposits at Silicon Valley Bank and Signature Bank, which collapsed when panicked depositors moved to withdraw their money.
"The steps we took were not focused on aiding specific banks or classes of banks," she added."Our intervention was necessary to protect the broader U.S. banking system."The Treasury secretary defended a decision by the Federal Deposit Insurance Corporation to cover all deposits at the two failed banks, even though deposit insurance is usually capped at $250,000 per account.
The Federal Reserve also set up a new lending program to help banks cover withdrawals, so they don't have to sell assets at fire-sale prices. "Every step we have taken has been intended to reassure the public that our banking system is resilient," Yellen said, adding that the government's emergency measures are working.Enlarge this image
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