<p><a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> admitted in a <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> Finance Committee hearing Thursday that the Federal Deposit Insurance Corporation and the Federal Reserve might not guarantee large deposits at small community <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">banks</a> like they did for a failed California bank.</p>
<p>The vast majority of deposits at <a href="http://dailywire.com/topic/silicon-valley-bank" target="_blank" rel="noopener">Silicon Valley Bank</a>, which offered services to nearly half of the venture-backed technology and healthcare firms in the United States before its <a href="https://www.dailywire.com/news/parent-company-of-silicon-valley-bank-explores-bankruptcy" target="_blank" rel="noopener">collapse</a> last week, exceeded the $250,000 threshold insured by the FDIC. Regulators scrambled to guarantee all deposits at Silicon Valley Bank such that the remainder of the financial system, in which roughly half of deposits surpass $250,000, would remain safeguarded against bank runs.</p>
<p>Sen. James Lankford (R-OK) questioned Yellen about whether uninsured deposits at community banks in his state “regardless of their size” would likewise be “fully insured.” Yellen replied that a bank “only gets that treatment” if supermajorities of board members at the FDIC and Federal Reserve, as well as she and President Joe Biden, decide that “the failure to protect uninsured depositors would create systemic risk and significant financial and economic consequences.”</p>
<p>Community banks typically operate in small geographic areas and focus on the needs of businesses and families in their immediate vicinity.</p>
<p>Lankford noted that such an approach to deposit insurance has already prompted sizable account holders to move their funds into large financial institutions.</p>
<p>“We have seen the mergers of banks over the past decade,” the lawmaker said. “I am concerned you are about to accelerate that by encouraging anyone who has a large deposit in a community bank to say, ‘We are not going to make you whole, but if you go to one of our preferred banks, we will make you whole.’”</p>
<p>When Yellen said that her agency and other financial regulators are by no means attempting to push large depositors away from small banks, Lankford responded that the phenomenon is “happening right now” because “you are fully insured, no matter what the amount is, if you are in a big bank,” while “you are not fully insured if you are in a community bank.”</p>
<p>Yellen, originally scheduled to testify on the <a href="https://www.dailywire.com/news/more-taxes-and-more-spending-heres-what-you-need-to-know-about-president-bidens-newest-budget" target="_blank" rel="noopener">budget proposal</a> submitted last week by the White House, started her <a href="https://www.dailywire.com/news/yellen-tells-lawmakers-that-the-american-banking-system-remains-sound-after-two-banks-collapse" target="_blank" rel="noopener">remarks</a> by informing lawmakers that the Treasury Department, the Federal Reserve, and the FDIC successfully protected all deposits at Silicon Valley Bank and Signature Bank. The assets for account holders at both defunct financial institutions were provided by the Deposit Insurance Fund, which is funded by fees on banks.</p>
<p>Lankford also expressed concern that community banks in Oklahoma would be forced to pay an additional special assessment to protect the deposits of the “large number of Chinese investors” and “companies directly connected to the Chinese Communist Party” who had accounts at Silicon Valley Bank. Yellen confirmed that all uninsured investors “will be made whole in that bank,” including foreign depositors, since there is no “legal basis to discriminate among uninsured depositors.”</p>
<p>Sen. Marco Rubio (R-FL) raised similar concerns in a <a href="https://www.rubio.senate.gov/public/index.cfm/press-releases?id=965E5182-B8C8-4625-8D8C-7E60AF2E425D" target="_blank" rel="noopener">letter</a> to Yellen which noted that Silicon Valley Bank had partnered with Shanghai Pudon Development Bank to finance startups in China. The lawmaker requested information regarding whether Chinese depositors can “expect to receive federal reimbursements from the Deposit Insurance Fund and other federal relief.”</p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Janet Yellen Admits Community Banks In Middle America Might Not Be Protected Like Silicon Valley Bank

CONTINUE READING

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News

Banks

Janet Yellen

Senate

Silicon Valley Bank

Treasury Department

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Janet Yellen Admits Community Banks In Middle America Might Not Be Protected Like Silicon Valley Bank