March 16 (Reuters) - Treasury Secretary Janet Yellen on
Thursday said a determination of "systemic risk" by regulators
is needed before all of a bank's deposits will be guaranteed,
even those exceeding deposit insurance limits.
Asked by Republican Senator James Lankford if all U.S.
deposits should be considered insured in the wake of the
guarantee regulators just made for all deposits at both Silicon
Valley Bank and Signature Bank, Yellen said: "A bank only gets
that treatment if a majority of the FDIC board, a
supermajority of the Fed board, and I in consultation with the
president, determine that the failure to protect uninsured
depositors would create systemic risk and significant economic
and financial consequences."
(Reporting By Dan Burns, David Lawder and Doina Chiacu, Editing
by Franklin Paul)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.