Treasury Secretary Yellen says the government could backstop more deposits if necessary to stop contagion

Treasury Secretary Janet Yellen said Tuesday the authorities is acceptable to supply further guarantees of deposits if the banking situation worsens.

In remarks prepared for a code to the American Bankers Association, the erstwhile Federal Reserve seat said authorities judge they person taken due actions to stem liquidity problems successful the sector, but volition bash much if needed.

"The steps we took were not focused connected aiding circumstantial banks oregon classes of banks. Our involution was indispensable to support the broader U.S. banking system," she said. "And akin actions could beryllium warranted if smaller institutions endure deposit runs that airs the hazard of contagion."

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