U.S. Treasury Secretary Janet Yellen said the government was prepared to provide more deposit guarantees if the banking crisis worsens.
Yellen said U.S. authorities took appropriate actions to curtail liquidity problems in the banking sector and were prepared to do more if needed.
Yellen said actions taken were necessary to protect the broader U.S. banking system.
- U.S. regulators are looking into a way to guarantee all bank deposits.
- One idea being discussed is a tiered pricing system where depositors would pay extra to guarantee deposits over $250,000.
- The Federal Reserve has launched an investigation into the collapse of SVB Financial Group and Signature Bank.
- The central bank plans to release the results of the probe by May 1.
- Following Yellen’s remarks, regional bank shares rose on Tuesday, with First Republic gaining nearly 30%.
