Markets Wired

WASHINGTON – Today, U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) in executive session by videoconference. 

During the meeting, the Council heard updates from the Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System (Federal Reserve Board), and U.S. Treasury Department on actions they were taking to stabilize the financial system and protect depositors. The agencies described their actions to help ensure all of the depositors of Silicon Valley Bank and Signature Bank would be made whole. It was noted that no losses associated with the resolution of these banks would be borne by taxpayers and that shareholders and certain unsecured debtholders would not be protected.

The Council also discussed the funding the Federal Reserve Board was making available to eligible depository institutions to ensure that banks, saving associations, and credit unions have the ability to meet the needs of all of their depositors. The new facility will be a significant source of liquidity, collateralized by high-quality securities, to eliminate a banking institution’s need to quickly sell those securities in times of stress. This will bolster the capacity of the banking system to safeguard deposits. 

In attendance at the Council meeting by videoconference were the following members: 

• Janet L. Yellen, Secretary of the Treasury (Chairperson of the Council)
• Jerome H. Powell, Chair, Board of Governors of the Federal Reserve System
• Michael J. Hsu, Acting Comptroller of the Currency
• Rohit Chopra, Director, Consumer Financial Protection Bureau
• Gary Gensler, Chair, Securities and Exchange Commission
• Martin Gruenberg, Chairman, Federal Deposit Insurance Corporation
• Rostin Behnam, Chairman, Commodity Futures Trading Commission
• Todd M. Harper, Chairman, National Credit Union Administration
• James Martin, Acting Director, Office of Financial Research (non-voting member)
• Steven Seitz, Director, Federal Insurance Office (non-voting member)
• Adrienne Harris, Superintendent, New York State Department of Financial Services (non-voting member)
  

Additional information regarding the Council and its work is available at https://www.fsoc.gov.

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