Yellen says bank situation ‘stabilizing,’ system is ‘sound’

US Treasury Secretary, Janet Yellen, has reassured depositors and investors that the country’s banking system is sound, despite a series of bank failures this month. Yellen said government intervention was necessary to protect the broader banking system and warned that additional rescue arrangements may be necessary if smaller institutions suffer deposit runs that pose the risk of contagion. The government has launched investigations into the causes of the bank failures and President Joe Biden called on Congress to strengthen rules on regional banks and impose tougher penalties on executives of failed banks.