Yellen Calls Friday FSOC Meeting After Banking-Sector Turmoil

Treasury Secretary Janet Yellen will convene the heads of top US financial regulators Friday morning for a previously unscheduled meeting of the Financial Stability Oversight Council.

(Bloomberg) — Treasury Secretary Janet Yellen will convene the heads of top US financial regulators Friday morning for a previously unscheduled meeting of the Financial Stability Oversight Council.

The meeting will be closed to the public, the Treasury Department said in a statement. The Treasury didn’t say what time the meeting would begin, and it wasn’t immediately clear whether the council would issue a statement following the meeting.

The step comes as regulators continue efforts to instill calm in financial markets and among bank depositors following the recent failure of two mid-sized lenders in the US and the near-collapse of banking giant Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG.

FSOC’s members include the heads of the Federal Reserve, the Federal Deposit Insurance Corp. and several other regulatory agencies. It has little legal authority but serves as a coordinating forum.

US financial regulators have come under pressure to offer greater clarity about their readiness to guarantee uninsured bank deposits in the wake of the collapse of Silicon Valley Bank, which was brought down by the sudden exodus of such funds.

Former Treasury Secretary Lawrence Summers, a paid contributor to Bloomberg Television, and ex-Federal Reserve Governor Dan Tarullo are among those who have highlighted the importance of top officials working to build confidence in the financial system through clear communication.

Read more: Summers, Tarullo Slam Stress-Test Failures, Urge Deposit Clarity

(Updates with background from fifth paragraph.)

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