WASHINGTON, May 8 (Reuters) - U.S. Treasury Secretary
Janet Yellen said on Monday that some regional bank stock prices
remained under pressure, but deposits had stabilized and
regulators stood ready to use the same tools used in recent bank
rescues if more contagion fears arose.
Yellen told CNBC in a live interview that some of the
selling of bank shares was due to earnings strain, but added
that the "bar is pretty high" for imposing any controls on short
selling of bank stocks.
"We're not seeing substantial deposit runoff," Yellen said.
"So there are some pressures on stock prices but our banking
system is well capitalized, it has access to liquidity and
regulators stand ready to use the same tools we have in the past
if there are further pressures that arise that could create
contagion."
Asked if she would support a temporary ban on short-selling
of bank stocks to take some pressure off of regional banks, she
said that was a matter for the Securities and Exchange
Commission (SEC) to decide, and the last use of such controls in
2008 may have made things worse.
"If it were being found that there's market manipulation,
that's something the SEC certainly could take action against.
But short selling more broadly, the bar is pretty high to put
controls on," Yellen said.
(Reporting by David Lawder and Andrea Shalal; Editing by Jamie
Freed)
david.lawder.thomsonreuters.com@reuters.net))
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.