The US Treasury Secretary has been clear: covering all bank deposits is not an option contemplated by the FDIC. During a speech in the US Senate, the former president of the Federal Reserve thus contemplated the option of protecting banks that fail, but without standardizing this tool. In this way, he clears up doubts about the information released this Tuesday, in which he opened the door to implement additional measures to protect depositors of retail banks who suffer massive outflows of money and threaten to worsen the financial crisis, in a message that was interpreted as a sign that it was willing to extend the protection of deposits applied with SVB Financial.
Yellen rules out extending the public guarantee to all bank deposits in the US
Date: June 4, 2023 Time: 00:36:42