It would appear that the Biden administration is ready to drop yet another bill on the American taxpayer.
On Tuesday, Yellen made comments that got everyone on edge.
She hinted that more banking bailouts could be in our future.
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The Silicon Valley Bank collapse has the entire financial world on edge.
The question is just how much the American taxpayer will be forced to pay for banks that are grossly mismanaged.
To that point, Yellen stated, “Similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”
Yellen explained that bailouts will occur for bank collapses that could put the entire system at risk.
She stated, “A bank only gets that treatment if a majority of the FDIC board, a super majority of the Fed board and I, in consultation with the president, determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.
“Treasury is committed to ensuring the ongoing health and competitiveness of our vibrant community and regional banking institutions.”
The FDIC currently guarantees all deposits up to $250,000, but the administration is looking to use emergency authorities to guarantee all deposits, regardless of the amount.
White House spokesman Michael Kikukawa added, “Since our administration and the regulators took decisive action last weekend, we have seen deposits stabilize at regional banks throughout the country and, in some cases, outflows have modestly reversed.”
