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Yellen told a Senate Appropriations subcommittee hearing that over the past two weeks, many mid-sized banks expressed “great concern” to the Treasury about their uninsured deposits.
“Many of these banks felt very skittish about their potential to suffer runs as well,” Yellen said. “We can see that banks across the country are shoring up their liquidity, they are very worried about contagion from the troubles of Silicon Valley Bank and Signature Bank. And the steps we took were designed to improve the confidence of all depositors that they’re safe in banks.”
