Banking-Sector Turmoil Prompts Yellen To Call FSOC Meeting On Friday

Friday morning, the Financial Stability Oversight Council will meet informally for the first time at the invitation of Treasury Secretary Janet Yellen.

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The Treasury Department announced in a statement that the meeting will be private. The meeting's start time wasn't disclosed by the Treasury, and it wasn't immediately apparent if the council would publish a statement after the meeting.

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Following the recent failure of two semi lenders in the US and the nearly-collapse of banking titan Credit Suisse Group AG before its government-brokered power grab by rival UBS Group AG, regulators are continuing their efforts to calm the financial markets and bank depositors. This step has been taken.

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The leaders of the Federal Reserve, the Federal Deposit Insurance Corp., and numerous other regulatory organizations are among the members of the FSOC. Although it has minimal legal standing, it functions as a venue for coordination.

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Since Silicon Valley Bank collapsed, which was caused by the unexpected outflow of such money, US regulatory agencies have been pressed to be more transparent about their willingness to insure uninsured bank deposits.

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Top authorities must try to increase financial system confidence by open communication, according to former Treasury Secretary Lawrence Summers, a paid commentator to Trade Algo, and former Federal Reserve Governor Dan Tarullo.