The brewing U.S. banking crisis seems far removed from the northeastern Vermont town of St. Johnsbury, but local Passumpsic Bank executive Daniel Kimbell grew concerned when he heard U.S. Treasury Secretary Janet Yellen's congressional testimony last week.
on March 16 that uninsured deposits would only be guaranteed in banks deemed a contagion threat, raising fears that banks like Passumpsic, with $900 million in assets, might see business deposits above the $250,000 insurance limit flee for perceived safety to far larger institutions.
They held just 11% of the $23.6 trillion in U.S. banking assets at the end of 2022, but nearly half are chartered in counties with populations of 50,000 or less, making them a key source of capital for small-town America and minority urban communities alike. Yellen on Tuesday shifted her emphasis, vowing to safeguard deposits at smaller banks and saying that the Treasury and regulatorsthat this would not include a swift government move to grant "blanket insurance" on all U.S. bank deposits without Congressional approval, but said that depositors in community banks, just like those in larger institutions, may qualify for systemic risk protections if those banks' failures could spark contagious bank runs.
Kimbell, who heads wealth management at Passumpsic Bank, said her reassurances "took the anxiety out of the room" over deposits, which was shared by banks large and small.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Vermont Democrat scolds Christian school over trans controversy, says they deserve sports banVermont Democrat Rebecca White said she did not believe the decision to bar Mid Vermont Christian School from future sports tournaments was a 'bridge too far.'
Read more »
Vermont Dem Defends Ban of Christian School from State Sports Over School's 'Dangerous' Transgender ObjectionsVermont Democrat state senator Rebecca White is defending her state’s move to ban a Christian high school from all state sports competitions because she says the school’s “dangerous” ideals are “discriminating” against transgender kids.
Read more »
Yellen says U.S. banks ‘stabilizing’ after emergency actions by Treasury, regulatorsTreasury Secretary Janet Yellen says the U.S. banking system is “stabilizing” after the failure of two banks and the rescue of a third institution led to concerns of a broader crisis in the industry.
Read more »
Yellen to say bank 'situation is stabilizing,' smaller banks play important roleTreasury Secretary Yellen plans to say Tuesday that “the situation is stabilizing and the U.S. banking system remains sound,” according to excerpts of prepared remarks.
Read more »
FLASHBACK: Treasury Sec. Yellen didn't 'believe' she’d see another financial crisis in her lifetimeTreasury Secretary Janet Yellen in 2017 remarked that she did not believe another financial crisis like the 2008 crash and Great Recession would happen again in our lifetime.
Read more »
Yellen says banking system ‘stabilizing,’ vows more U.S. support if neededTreasury Secretary Yellen will tell bankers that 'the situation is stabilizing' after U.S. moves including protecting depositors at two failed banks.
Read more »