Yellen To Hold Meeting Of Financial Regulators Amid Deutsche Bank Troubles - Reports

Treasury Secretary Janet Yellen has called a meeting of the top US financial regulators as newly discovered Deutsche Bank troubles suggested the banking crisis that spread from the United States to Europe has been widening, Bloomberg reported on Friday

WASHINGTON (UrduPoint News / Sputnik - 24th March, 2023) Treasury Secretary Janet Yellen has called a meeting of the top US financial regulators as newly discovered Deutsche Bank troubles suggested the banking crisis that spread from the United States to Europe has been widening, Bloomberg reported on Friday.

There was no time cited for the meeting of the so-called Financial Stability Oversight Council (FSOC), an entity overseen by the Treasury Department, and the discussions will be closed to the public, the report said.

Shares of Deutsche Bank tumbled heavily on Friday, suggesting possible contagion from the United States to Europe amid what has been described as a spike in the cost of insuring the German lender's debt against default.

FSOC members include the heads of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and several other regulatory agencies.

FSOC has little legal authority but serves as a coordinating panel for financial reforms.

The banking crisis erupted two weeks ago with the takeover of two mid-sized lenders - Silicon Valley Bank and Signature Bank - by the FDIC as depositors withheld billions of dollars from them for fear of the banks' solvency. Silicon Valley later filed for bankruptcy protection despite the FDIC rescue. Since then, other US banks, First Republic and PacWest Bancorp, have faced deposit runs as well.

The crisis took on an international dimension after the Zurich-based Credit Suisse, one of the world's preeminent names in investment banking, faced solvency issues and had to be bought by rival UBS of Switzerland.