- US Treasury Secretary Janet Yellen spoke about banks in a meeting.
- The sector is trying to overcome the largest bank bankruptcy since the 2008 financial crisis.
- Bitcoin price rose from $26,790 to $27,180.
Today, critical statements made by US Treasury Secretary Janet Yellen affected the markets. Bitcoin and Gold showed sudden increases, while the Dollar index is falling.
Yellen is Preparing Banks for Bankruptcy!
US Treasury Secretary Janet Yellen told various bank CEOs in a meeting that more consolidation may be necessary for the health of the sector.
#SONDAKİKA | ABD HAZİNE BAKANI JANET YELLEN, BANKA CEO’LARINA DAHA FAZLA BİRLEŞMENİN GEREKEBİLECEĞİNİ SÖYLEDİ.
— CO NEWS (@coinotag) May 19, 2023
The statements indicate that both Yellen and the Biden administration are observing the benefits of more potential mergers. In particular, the sector is trying to overcome the largest bank bankruptcy since the 2008 financial crisis.
With these statements, Bitcoin price rose from $26,790 to $27,180. Meanwhile, Gold rose from $1,958 to $1,984.
In currency, the Dollar index fell from 103.425 to 102.998, a decrease of 0.40%. Additionally, the Euro index rose by 0.40% from 107.83 to 108.28.
US Treasury Secretary Janet Yellen spoke about the potential need for more consolidation in a meeting with various bank CEOs on Thursday. The statement came in response to the banking crisis that has threatened the sector for much of the year.
Falling stock prices and weakening regional financial institutions have created a worrying impasse for officials. Furthermore, the failures of banks such as First Republic and Silicon Valley Bank have led to the idea that takeovers could be in the best interest of the sector as a whole.
Yellen met with the Bank Policy Institution board members in Washington on Thursday. Among those present were JP Morgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser, among others.
JPMorgan Identifies Centralized Players as the Root Cause of Recent Collapses
The Treasury Department issued a statement expressing Yellen’s sentiments. She particularly confirmed the “strength and resilience of the US banking system” to the participants. She also thanked them for their “leadership and support.”
Conversely, the bank merger discussion reported by CNN, based on information from two people close to the situation, did not include Yellen’s feelings. Instead, earlier this month, US regulators allowed JP Morgan to purchase the struggling First Republic Bank in a move aimed at stabilizing the threatened sector.
In addition, in an interview with Reuters, Yellen drew attention to the necessary consolidation of medium-sized banks. Yellen said, “This could be an environment where we see more consolidation, and you know, I think that’s something regulators will be open to.”
