Testifying before the senate finance committee, US Treasury Secretary, Janet Yellen Declared, that the us banking system is sound, and that Americans can feel confident about their deposits, Thursday (16/3/2023).
Thursday's hearing, meant to address President Joe Biden's budget proposal, comes after the sudden collapse of the nation’s 16th-biggest bank, and the go-to financial institution for tech companies.
In less than a week, silicon valley bank collapsed after depositors rushed to withdraw money, amid anxiety over the bank’s health. Just days after, regulators announced that New York-based signature bank also failed.
The government then stepped in, ensuring all depositors, including those holding uninsured funds exceeding USD250 thousand, were protected by federal deposit insurance.