The US government urgently summoned the regulators of the financial system to confront the banking crisis

Treasury Secretary Janet Yellen is taking the lead in taking measures to sum up the banking crisis.

US Treasury Secretary, Janet YellenOn Friday, a closed meeting of the Financial Stability Oversight Board (FSOC) was held, according to the ministry’s daily statement.

The Treasury statement did not provide further details on the matter of the FSOC meeting, which comes two weeks after the regulators’ shutdown Silicon Valley Bankwhose bankruptcy caused a banking crisis.

On Friday, concerns about the stability of banks centered on Europe Deutsche Bank shares fell 15%. and negotiate for Less than €8 for the first time in five months on the Frankfurt Stock Exchange.

US regulators are seeking to calm markets and assuage depositors’ concerns

Deutsche Bank bonds closed down 8.5% at €8.54. Other European banks also fell sharply, such as Commerzbank (-5.5%) f general community (-6.1%) f UPS 3.6 percent.

In this context, the US financial regulator, led by Dr treasure It consists of headers Federal Reservefrom the Federal Deposit Insurance Corporation (FDIC), the Securities and Exchange Commission (SEC), and other regulatory agencies, meet regularly to discuss Statement of risks to financial stability The United States and Oversight Initiatives.

The meeting comes at a time when fears of a global banking contagion have once again caused a sharp decline in bank stocks, amid fears that regulators have not yet contained the worst shock the sector has suffered since the 2008 global financial crisis.

The US government adopted measures to invoke the “cross-cutting risk exceptions” in response to the banking crisis

Janet Yellen tried again to quell fears of more run-ins on Thursday, telling US lawmakers she was ready to repeat steps taken by Silicon Valley and the bankruptcy of Signature Bank to protect uninsured bank deposits.

Yellen, the president Joe Bidenthe FDIC and the Federal Reserve, which oversees Silicon Valley and Signature, are taking steps Call Systemic Risk Exceptions.

See also  Mega Millions results today, December 22 | Winning numbers and prize draw

Friday’s meeting brings together a much broader group of regulators, including the heads of the Office of the Comptroller of the Currency, which regulates national banks and federal savings associations, as well as the Securities and Exchange Commission. Securities and Exchange Commission or the U.S. Securities and Exchange Commission), the National Credit Union Administration, and other agencies.

On Thursday, the US Treasury secretary assured lawmakers that she was ready to take additional measures on deposits.

It stated that “U.S. financial regulators are under pressure to provide more clarity on their willingness to insure uninsured bank deposits in the wake of the collapse of the Silicon Valley Bank, which experienced a sudden exodus of such funds.” bloomberg.

Former Treasury Secretary Lawrence Summersand former Federal Reserve governor, Dan Tarulloamong those who highlighted the importance of senior officials working to build confidence in the financial system through clear communication.

Read on:

12 keys to the decline of bank stocks: causes and possible consequences
A sharp drop in European bank stocks: Deutsche Bank fell 15% and dragged the stock markets
Markets: Dollar bonds fall on Wall Street and country risk exceeds 2,500 points
The ECB chief said the banking sector was “resilient” but called for a deposit guarantee system

Myrtle Frost

"Reader. Evil problem solver. Typical analyst. Unapologetic internet ninja."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top