Yellen says bank situation stabilizing, different from 2008

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — Treasury Secretary Janet Yellen says she’s focused on stabilizing the U.S. banking system following regional bank failures in California and New York. Yellen says additional bank rescue arrangements “could be warranted” if new failures at smaller institutions jeopardize financial stability. Yellen spoke Tuesday at the American Bankers Association. The Treasury secretary says overall the bank situation “is stabilizing” and the system “remains sound.” Yellen says government intervention has been necessary to “protect the broader banking system” and more rescue efforts could be necessary. Yellen says the 2008 financial meltdown was a solvency crisis but “what we’re seeing now is contagious bank runs.” Earlier this month, Silicon Valley Bank and Signature Bank failed.