USA could apparently guarantee further deposits
The US government is apparently considering guaranteeing further deposits from its bank customers if necessary. Several US media outlets, including the Financial Times, quoted Treasury Secretary Janet Yellen’s speech to the American Bankers Association on Tuesday.
“The steps we took were not designed to help any particular bank or class of bank,” Yellen said. “Our intervention was necessary to protect the broader US banking system. And similar measures could be justified if smaller institutions are hit by a deposit outflow that poses a risk of contagion.”
The Bloomberg news agency reported on Monday evening that the Ministry of Finance was considering such scenarios. Currently, deposits of $250,000 per customer per bank are guaranteed by the FDIC.