ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Newsbytes

Yellen: Uninsured depositors at small banks protected if contagion risk exists

March 21, 2023
Reading Time: 2 mins read
Treasury Secretary Janet Yellen answers questions from ABA President and CEO Rob Nichols at the ABA Washington Summit, March 21 2023.

Treasury Secretary Janet Yellen answers questions from ABA President and CEO Rob Nichols at the ABA Washington Summit, March 21 2023.

Federal regulators would provide similar protections for uninsured depositors at smaller banks as they did for Silicon Valley Bank and Signature Bank, if there is evidence the failures of those smaller banks would pose a larger contagion risk, Treasury Secretary Janet Yellen said today. Speaking at the ABA Washington Summit and clarifying congressional testimony she provided last week, Yellen said the government’s recent actions were not focused on aiding specific banks or classes of banks.

“Our intervention was necessary to protect the broader U.S. banking system,” Yellen said. “And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion. I believe that our actions reduced the risk of further bank failures that would have imposed losses on the Deposit Insurance Fund, which is paid for through fees on insured banks.”

During a Q&A with ABA President and CEO Rob Nichols following her speech, Yellen reiterated the Biden administration’s message that the banking system is sound and said that aggregate deposit outflows at regional banks have stabilized. Yellen also said that while the current crisis may lead regulators and policymakers to evaluate whether regulatory adjustments are needed, she didn’t want to speculate on what those may be at this time. “What I’m focused on is stabilizing the system and restoring the confidence of consumers,” she said.

Treasury can’t prioritize payments in debt default

The U.S. Treasury does not have the capability to prioritize government payments should Congress fail to raise the debt limit later this year, Yellen said. Asked her views on the current debt ceiling impasse, the Treasury secretary said defaulting on the debt would be “absolutely catastrophic” for the nation’s economy. She added that while some lawmakers have suggested the Treasury could prioritize payments to avoid some of the worst short-term fallout, the reality is the system isn’t designed to do that.

“The Treasury makes absolutely millions of payments every day and our system is built to pay our bills on time, not wait [to pay] bills or try to sort payments into different categories and pay some ahead of others,” Yellen said. “There’s a good reason that Treasury secretaries in both parties have rejected the idea of prioritization as a risky and dangerous idea.”

ADVERTISEMENT
Tags: Bank closuresToo big to fail
ShareTweetPin

Related Posts

In 90th anniversary year, Stonier graduates 182

In 90th anniversary year, Stonier graduates 182

Newsbytes
June 12, 2025

ABA Chair-Elect Cathy Owen of State Holding Company in Little Rock, Arkansas, delivered the keynote address during the graduation ceremony, which saw students receive Stonier diplomas and Wharton leadership certificates.

Fifth Circuit grants ABA mandamus, vacates transfer order for second time

ABA, CBA support maintaining confidentiality of CFPB nonbank risk determinations

Compliance and Risk
June 12, 2025

The American Bankers Association, joined by the Consumer Bankers Association, expressed support for the Consumer Financial Protection Bureau’s proposal to maintain the confidentiality of decisions to exercise the agency’s supervisory authority over a nonbank entity that may pose...

Survey finds high customer satisfaction with banking apps

Survey finds high customer satisfaction with banking apps

Newsbytes
June 12, 2025

Overall satisfaction with U.S. national banking apps is 669 on a 1,000-point scale, up 18 points from 2024. At the same time, the gap in satisfaction between best-performing and lowest-performing apps and bank websites shrunk to its lowest...

ABA experts see reasons for optimism amid economic, regulatory uncertainty

ABA experts see reasons for optimism amid economic, regulatory uncertainty

Compliance and Risk
June 11, 2025

The Trump administration has rolled back a broad range of banking guidance and regulatory proposals made in the last few years, and while bankers are used to regulatory whiplash when administrations change, it is possible some of changes...

Consumers expect short-term inflation, bearish on home prices and spending

Consumer price inflation 2.4% in May

Economy
June 11, 2025

The Consumer Price Index increased 0.1% in May on a seasonally adjusted annual basis, after rising  0.2% in April, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index increased 2.4%.

House panel advances ABA-backed bills on trigger leads, other topics

House panel advances ABA-backed bills on trigger leads, other topics

Community Banking
June 11, 2025

In a memo sent in advance of the markup, ABA noted that H.R. 2808 would “curb the abusive use of mortgage credit ‘trigger leads’ while narrowly preserving them for legitimate, transparent and accountable uses.”

NEWSBYTES

In 90th anniversary year, Stonier graduates 182

June 12, 2025

ABA, CBA support maintaining confidentiality of CFPB nonbank risk determinations

June 12, 2025

Survey finds high customer satisfaction with banking apps

June 12, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.