Finance Minister ready to take additional measures to protect bank deposits

Aktualisiert:

Von Krypto News Österreich

Finanzministerin Janet Yellen schlug vor, dass ihre Abteilung bereit sein könnte, Bankeinlagen bei Bedarf weiter zu stützen, nur einen Tag, nachdem sie die Möglichkeit scheinbar ausgeschlossen hatte. Auf ihre Äußerungen folgten kurze Schwankungen der Bankaktien, die dann ihren täglichen Abwärtstrend fortsetzten. Werden Einlagen gesichert oder nicht? In ihr vorbereitetes Zeugnis vor dem House Appropriations Subcommittee am Mittwoch wiederholte Yellen Kommentare vom Vortag erklärt, dass die jüngsten Maßnahmen der Regierung darin bestanden, die Sicherheit amerikanischer Einlagen zu gewährleisten. Sie entfernte jedoch eine Schlüsselzeile aus der Aussage vom Mittwoch, in der sie behauptete, „das US-Bankensystem sei sicher und gesund“, und fügte nun …
Finance Minister Janet Yellen suggested that her department could be willing to continue to support bank deposits if necessary, just a day after she had apparently excluded the possibility. Her statements followed short fluctuations by the bank shares, which then continued their daily downward trend. Are deposits secured or not? In her prepared testimony in front of the House Appropriations Subommittee on Wednesday, Yellen repeated comments from the previous day that the recent government was to ensure the security of American deposits. However, she removed a keyline from the Wednesday's statement in which she claimed that "the US banking system was safe and healthy", and now added ... (Symbolbild/KNAT)

Finance Minister Janet Yellen suggested that her department could be willing to continue to support bank deposits if necessary, just a day after it was apparently excluded.

The brief fluctuations of the bank stocks followed, which then continued their daily downward trend.

are deposits secured or not?

in her Prepared certificate before the house approprropriations subcommittee on Wednesday repeated yellen Comments from the previous day explains that the recent government consisted of ensuring the security of American deposits.

However, she removed a keyline from the statement from Wednesday, in which she claimed "the US banking system was safe and healthy", and now inserted an explanation that the Ministry of Finance was "ready to take additional measures if this is justified".

"As I said, we used important instruments to act quickly and prevent infection," said Yellen, "and these are instruments that we could use again. The strong measures we have taken make sure that the insoles of the Americans are safe."

The comments seem to contradict Yellen's explanations on Wednesday before another sub-committee of the Senate, according to which the Ministry of Finance was not considering a "flat rate" guarantee for banking contributions without the consent of the congress, which would lead to a subsequent slump in bank shares.

These earlier comments also contradict their . Your repeated flip-flop on this topic has voices within the crypto community, which you call bluff, which indicates that the government is either incomprehensible or undecided with regard to a possible banking crisis.

Many of the measures of the Fed and the Ministry of Finance have recently "inspired" more than normal.

just feel it through, draw on things, see what breaks, react if necessary, repeat. https://t.co/qtkrruyii3

- lyn alden (@Lynaldencontact) 23. March 2023

hold everything back

According to the Ministry of Finance's appeal against system-wide deposit insurance on Wednesday, billionaire Bill Ackman recommended would. This drain, he said, would accelerate by the unattractiveness of bank deposits because the Fed raises its key interest rate to 5 % on the same day.

"A temporary system-wide deposit protection is required to stop bleeding," he added. "The longer the uncertainty lasts, the more permanent the damage to the smaller banks and the more difficult it will be to get your customers back."

Yellen previously claimed that the Fed would only be willing to secure deposits at banks that are considered "systemic risk" for the financial system. Critics have argues that such a promise would make sure that there is no incentive for the bank customer to keep his deposits at smaller banks, creating a two-stage system.

The stock of First Republic Bank fell by another 6 %on Thursday. Meanwhile, the Deutsche Bank share fell by 3 %, since Credit Default swaps that protect against the bankruptcy of the bank rose to highs that have not been achieved since the beginning of 2020.

.