The US Treasury Secretary, Janet Yellen, has attempted to calm fears after the collapse of regional banks by stating that the US banking system is “sound”. However, she did acknowledge that additional rescue arrangements “could be warranted” if any new failures at smaller institutions posed a risk to financial stability. Yellen’s remarks follow a series of bank failures, including the second-largest bank collapse in US history, Silicon Valley Bank. Investigations have been launched into the Silicon Valley Bank collapse, and President Joe Biden has called on Congress to strengthen rules on regional banks and to impose tougher penalties on executives of failed banks. Yellen faced the Senate Finance Committee last week and offered reassurances that the “US banking system remains sound”. She will appear in front of congressional panels twice more this week.

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