Banks can be trusted if they regularly calculate the value of their high-quality liquid assets, and report this to regulators. The recent bank closures, Silicon Valley Bank and Signature Bank initially raised questions of whether companies would have access to their funds. Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg made clear that deposits would be available starting Monday, March 13th. The Biden administration and federal regulators are stressing that banks should be able to be trusted. However, a change in the law is needed in order to require banks to provide reports indicating potential problems.
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