Banks experienced a stock bump following U.S. Treasury Secretary Janet Yellen’s comments before Congress.
U.S. Treasury Secretary Janet Yellen said the nation’s banking system is “sound,” leading to a surge in stocks for several banking institutions.
Following the seizure of two U.S. financial institutions, Silicon Valley Bank and Signature Bank, President Joe Biden on Sunday announced emergency measures to secure the banking system.
First Republic Bank will receive a $30 billion rescue package from 11 of the largest U.S. banks.
U.S. Treasury Secretary Janet Yellen on Thursday said the nation’s “banking system is sound” during testimony before the Senate Finance Committee.
Following her remarks, stocks rose for many banks, including among institutions that had trading halted on Monday after shares fell drastically.
Investor confidence has resulted in market swings this week as Wall Street braces for more volatility. The banking market became precarious after the seizure of two U.S. financial institutions, Silicon Valley Bank (SVB) and Signature Bank, which was soon followed by shares for Credit Suisse dropping to an all-time low on Wednesday.
On Sunday, the U.S. government announced it would put emergency measures into place to secure the banking system and protect deposits at SVB and Signature Bank.
