Janet Yellen to say US banking system ‘remains sound’ despite bank failures

Treasury secretary Janet Yellen will tell a Senate committee that the US banking system “remains sound” and defend the Biden administration’s actions to rescue depositors at two failed banks and thwart broader financial contagion, according to prepared testimony ahead of a hearing on Thursday.

Yellen is expected to be grilled by lawmakers on the Senate finance committee regarding the aggressive intervention by US regulators and officials on Sunday to guarantee all deposits at Silicon Valley Bank and Signature Bank, two collapsed regional banks, and set up a new Federal Reserve facility to provide liquidity to other banks.