US Races to Calm Depositors, Bankers
In a concerted effort to quell depositor fear, the White House has told Bloomberg that it will not allow community banks to experience a panic and Secretary Yellen is said shortly to assure bankers that smaller banks will not be allowed to experience a concerted run.
Treasury Stands Behind Small Banks In Systemic Situations
In her formal remarks today, Treasury Secretary Yellen confirmed press reports that the U.S. would contemplate interventions similar to those for SVB and SBNY should a smaller bank suffer a deposit run posing contagion risk.
CFPB Adds to Credit-Card Competition Interventions
Continuing its campaign against large credit-card companies (see FSM Report CREDITCARD36), the CFPB today launched an expanded credit card issuer survey to post new information on smaller companies the agency thinks beneficial to increase competition in this sector.
Adeyemo Reiterates US Backstop
In addition to Secretary Yellen’s comments today, Deputy Secretary Wally Adeyemo not only praised his agency’s response, but also reaffirmed that the government is prepared to back smaller banks.