President Biden didn’t want to say it out loud…
But?
The Government WILL ‘bail’ out the banks if need be…..
Treasury Secretary Janet L. Yellen expressed confidence in the nation’s banks on Tuesday but said she was prepared to take additional action to safeguard smaller financial institutions as the Biden administration and federal regulators worked to contain fallout from fears over the stability of the banking system.
Ms. Yellen, seeking to calm nerves as the U.S. financial system faces its worst turmoil in more than a decade, said the steps the administration and federal regulators had taken so far had helped restore confidence. But policymakers were focused on making sure that the broader banking system remained secure, she said.
“Our intervention was necessary to protect the broader U.S. banking system,” Ms. Yellen said in remarks before the American Bankers Association, the industry’s leading lobbying group. “And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”
She added: “The situation is stabilizing. And the U.S. banking system remains sound.”
However, Ms. Yellen also underscored the gravity of the current situation. She said that the stresses facing the banking system, while not as dire as the 2008 financial meltdown, still constituted a “crisis” and pointed to the risk of bank runs spreading….
Lawmakers are ‘talking ‘ about more protection for bank deposit ‘s
Lawmakers are looking for ways to resolve a major concern that threatens to keep the banking industry in turmoil: The federal government only insures bank deposits up to $250,000.
Some members of Congress are looking for ways to boost that cap, at least temporarily, in order to stop depositors from pulling their money out of smaller institutions that have been at center of recent bank runs….
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Such a move would potentially reprise a playbook used during the 2008 financial crisis and authorized at the onset of the coronavirus pandemic in 2020 to prevent depositors from pulling their money out.
Others, including Senator Elizabeth Warren, Democrat of Massachusetts, have suggested lifting the deposit cap altogether…
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But some warned that enacting broad-based deposit insurance could set out a dangerous precedent: signaling to bank managers that they can take risks unchecked, and leading to calls for more regulation to protect taxpayers from potential costs…
Note….
The Fed interest raising is MORE on the finincial markets minds and some feel the Fed maybe making things worst for the banking susyem with their actions…
Bank bailouts generally come with more oversight of those banks, something banks do NOT like even if they handle BILLIONS of people’s money…