Yellen says bank situation stabilizing, different from 2008
US Treasury Secretary told the American Bankers Association that overall "the situation is stabilizing"
By FATIMA HUSSEIN
Published - Mar 21, 2023, 02:12 PM ET
Last Updated - Jul 18, 2023, 04:12 PM EDT
WASHINGTON (AP) — Treasury Secretary Janet Yellen projected calm on Tuesday after a recent regional bank collapses but told a gathering of bankers that additional rescue arrangements "could be warranted" if any new failures at smaller institutions jeopardize financial stability.
Yellen, who made her remarks at the American Bankers Association, said that overall "the situation is stabilizing."
"And the U.S. banking system remains sound," Yellen said, drawing clear differences between recent events and the 2008 financial meltdown, which triggered trillions of dollars of financial losses globally.
"This is different from 2008," she said. "2008 was a solvency crisis, rather what we're seeing now is contagious bank runs."
