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close video Treasury Secretary Yellen questioned over bank failures during Senate hearing

Fox News’ Chad Pergram discusses Treasury Secretary Janet Yellen’s comments during a Senate hearing over the Silicon Valley Banks failures, during which lawmakers expressed concerns.

Treasury Secretary Janet Yellen said Tuesday the government is prepared to take additional actions to protect smaller banks as the U.S. financial system confronts the worst crisis since 2008. 

In remarks prepared for delivery to the American Bankers Association, Yellen expressed confidence in the nation's banks but suggested that further steps to protect banks may be necessary in the event of a deposit run. 

"The steps we took were not focused on aiding specific banks or classes of banks. Our intervention was necessary to protect the broader U.S. banking system," Yellen said, according to an excerpt of her speech. "And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion."

U.S. regulators took extraordinary steps earlier in March to contain the fallout from the collapse of Silicon Valley Bank and Signature Bank and shore up wavering confidence in the financial system, including protecting all deposits at the two institutions – even those holding funds that exceeded the FDIC's $250,000 insurance limit. 

ONE YEAR INTO ITS INFLATION FIGHT, THE FED FACES A MURKY FUTURE

Janet Yellen, US Treasury secretary, during a House Ways and Means Committee hearing in Washington, DC, US, on Friday, March 10, 2023. (Al Drago/Bloomberg via Getty Images / Getty Images)

The Federal Reserve also launched a new emergency backstop for lenders to help them meet deposit withdrawals under favorable terms.

The moves were intended to staunch a flow of funds from small and regional U.S. lenders as customers rushed to banks deemed too big to fail.

Although Treasury said that deposits are small and mid-sized banks have begun to stabilize, U.S. officials are reportedly studying whether they can temporarily expand federal deposit insurance to cover all deposits, according to Bloomberg News. A group of mid-sized banks has argued that is necessary to prevent bank runs for the next two years.

The former Fed chief did not address the matter in her speech.

Employees walk in front of a sign outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. (Justin Sullivan/Getty Images / Getty Images)

"The situation is stabilizing. And the U.S. banking system remains sound," Yellen said. "The Fed facility and discount window lending are working as intended to provide liquidity to the banking system. Aggregate deposit outflows from regional banks have stabilized."

Yellen's comments come amid fresh turmoil in the banking sector and heightened fears over a broader financial crisis. 

All eyes are currently on San Francisco-based First Republic Bank, which boasts about $213 billion in assets and a roster of wealthy clients. The mid-sized lender received a $30 billion cash infusion from 11 of the nation's biggest banks last week, but liquidity fears remain and there are new efforts underway to stabilize the bank, according to The Wall Street Journal.

MORTGAGE RATES POST BIG DECLINE AMID SVB FALLOUT

JPMorgan Chase CEO Jamie Dimon is leading discussions with the top executives of other big banks about how to boost First Republic's capital. Among the options on the table are an investment in First Republic by the banks themselves; a sale; or an outside liquidity injection, the Journal reported.

A First Republic Bank branch in New York, US, on Friday, March 10, 2023. (Photographer: Jeenah Moon/Bloomberg via Getty Images / Getty Images)

The concerns at First Republic and other mid-sized regional banks began after the historic failure of Silicon Valley Bank – the 16th largest lender in the country – earlier this month following a liquidity crunch. It marked the largest U.S. bank failure since the global financial crisis in 2008.

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SVB, which largely catered to tech companies, venture capital firms and high-net-worth individuals, saw a huge boom in deposits during the pandemic, with its assets surging from $56 billion in June 2018 to $212 billion in March 2023. The bank responded by investing a large chunk of that cash into long-term U.S. Treasury bonds and other mortgage-backed securities. However, that strategy backfired when the Fed embarked on the most aggressive interest-rate hike campaign since the 1980s, and the value of those securities tumbled.

That coincided with a decline in available funding for startups, which started drawing down more of their money to cover their expenses, forcing the lender to sell part of its bond holds at a steep $1.8 billion loss. When depositors realized that SVB was in a precarious financial situation, a bank run ensued.

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Astros’ Paredes to forgo season-ending surgery

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Astros' Paredes to forgo season-ending surgery

Houston Astros third baseman Isaac Paredes has opted to forgo season-ending surgery on his strained right hamstring and instead will rehab the injury in an effort to return this season, general manager Dana Brown told reporters Monday.

The 26-year-old Paredes, who is hitting .259 with 19 home runs and 50 RBIs this season, was placed on the injured list on July 20 after he was hurt while running to first base. Brown said the injury was “severe.”

Paredes has received a platelet-rich plasma injection and has had multiple rounds of imaging. His rehab stint, which will mostly take place in Houston around the team, will begin after a “long period” of letting the hamstring rest before beginning any sort of exercise, Brown said.

If Paredes undergoes surgery, he likely wouldn’t be able to return for at least six months.

“His whole opinion on this is, he wants to work hard to try to get back this season,” Brown said Monday. “Of course, he’s going to dedicate himself to getting back.”

The Astros were proactive at the trade deadline, acquiring infielder Carlos Correa from the Minnesota Twins. Correa, a Rookie of the Year and two-time All-Star in his prior stint with the Astros, has agreed to move from shortstop to third base while Paredes is out of the lineup.

The Astros (62-50) currently lead the AL West with around 50 games remaining in the regular season.

“He’s doing well and he’s working hard,” Astros manager Joe Espada said of Paredes. “He’s in good spirits, and I know he would rather be on the field. We hope for the best.”

The Associated Press contributed to this report.

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Braves’ Riley on IL; Holmes passes on TJ surgery

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Braves' Riley on IL; Holmes passes on TJ surgery

Atlanta Braves third baseman Austin Riley on Monday was placed on the 10-day injured list for the second time in two months with a strained lower abdominal muscle.

Right-hander Grant Holmes, meanwhile, has opted to rehab his injured right elbow rather than undergoing Tommy John surgery, manager Brian Snitker told reporters.

Riley suffered the injury while tagging out Cincinnati’s Elly De La Cruz near home plate in the Braves’ 4-2 win on Sunday in the rain-delayed MLB Speedway Classic at Bristol Motor Speedway.

Riley also landed on the IL on July 12 with a strained abdomen. He returned on July 25.

The Braves recalled infielders Nacho Alvarez Jr. and Jonathan Ornelas from Triple-A Gwinnett before opening a home series against Milwaukee on Monday night. The team optioned outfielder Jarred Kelenic to Gwinnett following Sunday’s game.

Riley is hitting .260 with 16 homers and 54 RBIs.

Snitker said Holmes, who has damage to his UCL, made the decision to not have surgery at the present time after consulting with two doctors. The pitcher could also reconsider and have surgery after the season.

Snitker did not give a timeline as to when Snitker, who was placed on the 60-day injured list on July 27, will begin throwing again. He is not eligible to be activated until Sept. 26.

Holmes is 4-9 with a 3.99 ERA and 123 strikeouts this season. He had 15 strikeouts in a game against the Colorado Rockies in June.

The Braves’ other Opening Day starters also are all on the injured list, with AJ Smith-Shawver out for the season after having Tommy John surgery.

Snitker said All-Star left-hander Chris Sale threw a bullpen session as he works his way back from a fractured rib. He is next scheduled to throw live batting practice.

Reynaldo Lopez, who was placed on the IL on March 29 with shoulder inflammation after one start, is playing catch, but Snitker said there is no timetable for his return.

Spencer Schwellenbach, who is recovering from a fractured elbow, has not resumed throwing.

The Associated Press contributed to this report.

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Bristol races to return to NASCAR shape after MLB

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Bristol races to return to NASCAR shape after MLB

BRISTOL, Tenn. — The instant the Atlanta Braves and Cincinnati Reds cleared the baseball diamond inside the infield at Bristol Motor Speedway, a new clock started.

“The Last Great Colosseum” has to switch from hosting the MLB Speedway Classic and be ready for NASCAR’s return to the historic racetrack for a playoff race Sept. 13.

The first MLB regular-season game in the state of Tennessee set a record with a paid attendance of 91,032, but now it must get back to its racing roots.

“It is difficult, but it’s things that we like,” said Steve Swift, Speedway Motorsports’ senior vice president of operations. “It gives us a challenge and we like challenges.”

Major League Baseball used BaAM to create everything from clubhouses for the Braves and Reds, complete with showers, strength and conditioning rooms, coach and trainers’ offices and batting cages. They constructed grandstands down both base lines with broadcast booths.

Pit walls were taken down and now have to be rebuilt. The transformation to a baseball diamond in the infield required 17,500 tons of gravel to level the infield, then 340 tons of Pennsylvania clay for the playing surface.

Swift said pouring concrete walls takes time — and then more time to cure properly.

“As soon as the last pitch is thrown, the last hit’s hit, teams do their thing, postgame’s taken care of, pads will start coming off the wall, and they’ll work through the night to basically start disassembling so we can reassemble for the NASCAR race,” Swift said.

Some of the gravel will be used in Bristol’s parking lots. Swift said they have found groups to help use some of the materials to help people still recovering from the damages left by Hurricane Helene. That includes 2x4s and plywood used for the grandstands.

“A lot of stuff is going to go to good use as far as the rebuild portion,” Swift said. “We just need to get it out of the way so we can put back asphalt and concrete.”

This new renovation schedule has a couple of days built in for protection. The target date for being finished is Sept. 7.

“There may still be some paint drying whenever they roll in with the Goodyear haulers, but we’ll definitely shoot for (Sept. 7),” Swift said.

Bristol hosted a college football game in 2016 that drew 156,990. Now the NHL might be in Bristol’s future after Sportico reported Friday that league officials would be checking out how the racetrack handled Major League Baseball.

“We’ve shown with football and now baseball being here, that things can take place and we can do the things that nobody would even think about,” Swift said.

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