Janet Yellen: Chinese Depositors to Silicon Valley Bank to Be Made Whole

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Treasury Secretary Janet Yellen told Sen. James Lankford (R-OK) during a Senate Finance Committee hearing on Thursday that Chinese depositors will be made whole while community banks will have to pay higher fees.

Yellen spoke before the Finance Committee to discuss President Joe Biden’s budget proposal, but given the increasing concern over the instability in the banking sector, most questions revolved around the federal government’s response to the collapse of Silicon Valley Bank, Signature Bank, and others.

Lankford asked Yellen if Chinese investors, including those with affiliations with the Chinese Communist Party, would be made whole through the government’s efforts to stave off a financial crisis.