Yellen Says US Will Intervene If Needed to Protect Smaller Banks

Treasury Secretary Janet Yellen said on Tuesday the US government could repeat the drastic actions it took recently to protect bank depositors if smaller lenders are threatened.

“Our intervention was necessary to protect the broader US banking system, and similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion,” Yellen said in remarks to an American Bankers Association conference in Washington.

The federal government “is resolutely committed” to mitigating financial-stability risks where necessary, Yellen said in a question-and-answer session. “The public should have confidence in our banking system.”

WATCH: Treasury Secretary Janet Yellen says the US government is “resolutely committed” to mitigating financial-stability risks where necessary.

Source: Bloomberg

US authorities took extraordinary ...