Treasury Secretary Janet Yellen stressed on Thursday that the banking system in the United States is "safe and sound" as the country's biggest bank JPMorgan Chase pulled other lenders together in cobbling a rescue plan for beleaguered First Republic Bank
WASHINGTON (Pakistan Point News / Sputnik - 16th March, 2023) Treasury Secretary Janet Yellen stressed on Thursday that the banking system in the United States is "safe and sound" as the country's biggest bank JPMorgan Chase pulled other lenders together in cobbling a rescue plan for beleaguered First Republic Bank.
"Our judgment is (that) this banking system overall is safe and sound," Yellen said in testimony before the Senate. "Depositors should have confidence in the system."
Her remarks came as US media reported that JPMorgan was leading in the effort with Citigroup, Bank of America and Wells Fargo to bail out First Republic Bank in a plan that could include a sizable capital infusion.
Others cooperating in the effort include smaller-sized banks US Bancorp and PNC Financial and Wall Street investment banking giants Goldman Sachs Group and Morgan Stanley, the reports said.
First Republic experienced a "bank run" � or pulling of customer deposits � after the collapse of California-based Silicon Valley Bank last week that brought it under the control of the Federal Deposit Insurance Corp. The so-called FDIC also intervened to take charge of Signature Bank, another lender in trouble.
Reports said First Republic Bank would have an estimated $70 billion in available liquidity with funding provided under the rescue effort, which was also backed by the Federal Reserve.
