'Contained' 2.0? Treasury Sec Yellen Says Banking System Is "Resilient"
Remember when Ben Bernanke told the world that the subprime crisis - that would eventually collapse the global financial system - was "contained"?
And don't forget, Janet Yellen exclaimed proudly that there would never be another financial crisis "in our lifetimes" in 2017, only to see the repo crisis and the reaction to COVID lockdown policies prompt the biggest response by The Fed ever.
Having earlier commented during her appearance before Congress that Treasury was "monitoring" several banks as Silicon Valley Bank failed, the Treasury Department released this statement:
“Today, Secretary of the Treasury Janet L. Yellen convened leaders from the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to discuss developments around Silicon Valley Bank.
Secretary Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event.”
Some of them don't look very "resilient"...
Is "resilient" the new "contained"?