Treasury Secretary Janet Yellen on Thursday testified before the House that the government is ready to step in with more help for bank depositors if necessary
"We have used important tools to act quickly to prevent contagion," she said. "And they are tools we could use again. The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted."
The secretary also stressed that the cost of these interventions is not being borne by taxpayers but rather from the Deposit Insurance Fund, which is funded by bank fees.
The government is willing to support uninsured depositors as well, according to testimony from Yellen last week. She said those deposits would also be covered in the event that a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences."
Yellen's public comments come as the banking sector continues to fuel uncertainty across the economy.
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A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
