Saturday, June 3, 2023

Yellen sees the need for deregulation of banks made in the US

The Secretary of the Air of the United States, Janet Yellen, stated this Thursday that it is necessary to review the financial deregulation that has been carried out in the United States in the years since the 2008 crisis and to adapt to the new circumstances.

“Regular requirements have been relaxed in recent years. I think it’s appropriate to assess the impact of these deregulation decisions and take the necessary steps,” Yellen said at the National Association for Business Finance’s 39th Annual Economic Conference.

This appreciation, Yellen acknowledged, was led two weeks ago by Silicon Bank and Signature Bank.

“It is very important that we re-examine whether our current regimes of care and control are sufficient to meet the risks of banks today and we must act to these risks, if necessary,” said the secretary.

Yellen returned, however, to affirm that despite the fact that there was “relative stability in the financial sector in general this month, even as concerns about specific institutions grew.”

“Clearly, the banking system is significantly stronger than it was before the global financial crisis (…) Today, the US financial system is strong, even when it has been under pressure,” he said.

As she did in recent weeks, Yellen defended the actions of the US government even after the bankruptcy.

“We used great tools to prevent contamination and to act quickly and they are tools that we could use again. We took care of the consultations to ensure that the deposits of Americans are safe and we were ready to take other measures if the situation arises,” he said.

On March 12, the regulatory bodies of the United States sent a plan to protect the deposits of Silicon Valley Bank (SVB) and Signature Bank after the collapse.

The Treasury Department, the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) have announced that customers will have access to all money deposited with these entities.

H also launched a liquidity line for banks with financing difficulties to prevent distrust from spreading to other entities and therefore what was not done caused a deeper financial crisis.

Nation World News Desk
Nation World News Desk
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