World
Yellen seeks to reassure US legislators after bank collapse
Treasury chief tells lawmakers that clients ‘can really feel assured that their deposits shall be there after they want them’.
United States Treasury Secretary Janet Yellen has sought to reassure legislators – and US residents – that the nation’s banking system stays “sound” within the wake of the second largest financial institution collapse in its historical past.
Yellen on Thursday turned the primary official from President Joe Biden’s administration to face legislators over the choice to guard uninsured cash at two failed regional banks, a part of a collection of actions Washington has maintained doesn’t represent a bailout.
“I can reassure the members of the committee that our banking system is sound and that People can really feel assured that their deposits shall be there after they want them,” Yellen stated throughout a Finance Committee listening to within the Senate.
“This week’s actions show our resolute dedication to make sure that our monetary system stays sturdy and the depositors’ financial savings remained protected,” she stated.
The listening to got here days after the failure of California-based Silicon Valley Financial institution, the sixteenth largest US financial institution and a go-to monetary establishment for tech entrepreneurs, after depositors rushed to withdraw cash over nervousness concerning the financial institution’s well being.
The frenzy prompted liquidity dangers that meant the financial institution couldn’t meet depositors’ withdrawal requests. Authorities closed the financial institution on Friday.
Regulators then convened over the weekend and introduced that New York-based Signature Financial institution, virtually 1 / 4 of whose deposits have been from the cryptocurrency sector, had additionally failed.
The Justice Division and the Securities and Alternate Fee have since launched investigations into the Silicon Valley Financial institution collapse. Authorities have assured all depositors, together with these holding uninsured funds exceeding $250,000, that they’d be protected by federal deposit insurance coverage.
The collapse has renewed debate over deregulation of the US monetary trade and authorities intervention.
Dealing with strain from the influential tech trade to behave, Washington on Sunday launched a raft of emergency measures to shore up confidence within the banking system. The transfer appeared to stem any broader run on banks.
“First, we labored with the Federal Reserve and FDIC [Federal Deposit Insurance Corporation] to guard all depositors of the 2 failed banks,” Yellen advised legislators on Thursday.
“Second, the Federal Reserve is offering extra assist to the banking system with a brand new lending facility,” she stated. “This may assist monetary establishments meet the wants of all of their depositors.”
Yellen added: “Shareholders and debt holders aren’t being protected by the federal government. Importantly, no taxpayer cash is getting used or put in danger with this motion.”
Nonetheless, Senator Mike Crapo stated he was “involved concerning the precedent of guaranteeing all deposits and the market expectations transferring ahead”.
Talking on CBS’s Face the Nation programme on Sunday, Yellen had stated that bailouts weren’t on the desk.
“We’re not going to do this once more,” she stated, referring to the US authorities’s response to the 2008 monetary disaster, which led to large authorities rescue insurance policies for giant US banks.
Biden additionally sought to reassure People earlier this week.
The US president advised reporters on Monday that he would search to carry these accountable to account and push for higher oversight and regulation of bigger banks whereas he additionally promised that “no losses can be borne by the taxpayers”.
“People can believe that the banking system is protected,” Biden stated. “Your deposits shall be there once you want them.”
World
Jeff Baena, Film Director and Husband of Aubrey Plaza, Dead at 47
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World
World’s oldest person dies in Japan at 116
Tomiko Itooka, a Japanese woman who was the world’s oldest person, according to Guinness World Records, has died, an Ashiya city official said Saturday. She was 116.
Yoshitsugu Nagata, an official in charge of elderly policies, said Itooka died Dec. 29 at a care home in Ashiya, Hyogo Prefecture, central Japan.
Itooka, who loved bananas and a yogurt-flavored Japanese drink called Calpis, was born May 23, 1908. She became the oldest person last year after the death of 117-year-old Maria Branyas, according to the Gerontology Research Group.
WORLD’S OLDEST MAN, DEAD AT 112, ATE THIS MEAL EVERY FRIDAY
When she was told she was at the top of the World Supercentenarian Rankings List, she simply replied, “Thank you.”
When Itooka celebrated her birthday last year, she received flowers, a cake and a card from the mayor.
Born in Osaka, Itooka was a volleyball player in high school and long had a reputation for a sprightly spirit, Nagata said. She climbed the 3,067-meter (10,062-foot) Mount Ontake twice.
OLDEST PERSON IN THE US, ELIZABETH FRANCIS, DIES AT 115 YEARS OLD IN HOUSTON
She married at 20, and had two daughters and two sons, according to Guinness.
Itooka managed the office of her husband’s textile factory during World War II. She lived alone in Nara after her husband died in 1979.
She is survived by one son and one daughter and five grandchildren. A funeral service was held with family and friends, according to Nagata.
According to the Gerontology Research Group, the world’s oldest person is now 116-year-old Brazilian nun Inah Canabarro Lucas, who was born 16 days after Itooka.
World
Austrian chancellor to resign after coalition talks collapse
Nehammer says his People’s Party would not support measures that it believes would harm the economy or new taxes.
Austrian Chancellor Karl Nehammer has said he will resign after talks between the country’s biggest centrist parties on forming a government without the far-right Freedom Party (FPO) collapsed.
The announcement on Saturday comes a day after the liberal Neos party withdrew from the negotiations with Nehammer’s conservative People’s Party (OVP) and the Social Democrats (SPO).
“After the breakoff of the coalition talks I am going to do the following: I will step down both as chancellor and party chairman of the People’s Party in the coming days,” he said.
In a video posted to his social media accounts, the outgoing chancellor said “long and honest” negotiations with the centre-left failed despite a shared interest in fending off the gaining far right.
Nehammer emphasised that his party would not support measures that it believes would harm the economy or new taxes.
He said he would enable “an orderly transition” and railed against “radicals who do not offer a single solution to any problem but only live from describing problems”.
The far-right Freedom Party (FPO) won the first parliamentary election in its history in late September with close to 30 percent of the vote.
But other parties refused to govern in a coalition with the eurosceptic, Russia-friendly FPO and its leader Herbert Kickl, so President Alexander Van der Bellen in late October tasked Nehammer to form a coalition.
Nehammer’s announcement comes after he also failed to reach an understanding with the Neos party.
Neos leader Beate Meinl-Reisinger said progress was impossible and that “fundamental reforms” had not been agreed upon.
After the chancellor’s exit, the OVP is expected to convene to discuss potential successors.
The political landscape remains uncertain in Austria, with no immediate possibility of forming a stable government due to ongoing differences between the parties.
The president may now appoint another leader and an interim government as the parties try to find a way out of the deadlock.
The next government in Austria faces the challenge of having to save between 18 to 24 billion euros ($18.5-24.7bn), according to the European Commission.
The country’s economy has been in a recession for the past two years, is experiencing rising unemployment and its budget stands at 3.7 percent of gross domestic product – above the European Union’s limit of 3 percent.
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