Yellen: SVB, Signature Bank turmoil had ‘serious risk of contagion’: Yellen

WASHINGTON: US authorities moved to protect depositors at Silicon Valley Bank and Signature Bank as they saw “serious risk of contagion” that could have triggered runs on many banks, Treasury Secretary Janet Yellen said Thursday.
Such treatment only arises if a majority of the Federal Deposit Insurance Corporation (FDIC) board, supermajority of the Federal Reserve board and Yellen herself in consultation with the US president “determine that the failure to protect uninsured depositors would create systemic risk,” she told members of Congress at a hearing.