In an interview with Bloomberg on Friday, Treasury Secretary Janet Yellen said she didn’t want to get into “individual bank situations” when asked if she was confident other regional and smaller banks wouldn’t go bankrupt. . But overall, the banking system is in good shape, and “banks will be able to weather this situation, but we are monitoring the situation very closely.”
Yellen said the failing bank “had some very unique characteristics that made it vulnerable” and had a “very uncommon” profile. However, many banks, especially regional banks, are feeling their earnings pressure. The amount of deposits they have to pay is increasing, their investments are often at low interest rates, and stock prices are under pressure. But most banks today, including those whose share prices are under pressure, have solid liquidity that could manage to repay uninsured depositors should they flee. ”
Bloomberg Television’s Washington correspondent Anne-Marie Hordern cuts to the question: “Are you sure other regional and microfinance institutions won’t go bankrupt?”
Yellen replied: “I don’t want to talk about individual bank situations. With available liquidity improving, we believe banks will be able to weather this situation, but we are “monitoring the situation very closely.”
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