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Submitted by jhartgen@abi.org on

Treasury Secretary Janet Yellen is expected to tell a banking conference on Tuesday that the federal government could step in to protect depositors at additional banks if regulators see a risk of a run on the banking system, the Wall Street Journal reported. Yellen is set to deliver remarks to a gathering of the American Bankers Association in Washington as she and other federal officials try to shore up confidence in the U.S. banking sector after the collapse of Silicon Valley Bank and Signature Bank. Ms. Yellen and other federal regulators used emergency powers to guarantee uninsured deposits at SVB and Signature, while also setting up a new Federal Reserve lending program to allow banks to meet withdrawal requests. “Our intervention was necessary to protect the broader U.S. banking system. And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion,” Yellen will say, according to excerpts of her prepared remarks. Treasury officials have said deposit outflows from regional banks have slowed or even reversed since the federal government staged its intervention last week. But some regional banks have still faced deep investor skepticism, with First Republic Bank’s stock reaching its lowest level on record on Monday. The battering comes after Ms. Yellen helped organize a $30 billion deposit from 11 banks into First Republic last week. JPMorgan Chase & Co. Chief Executive Jamie Dimon is leading talks about a fresh effort to stabilize the lender.