Balanced News: Treasury Secretary Yellen says not all uninsured deposits will be protected in future bank failures

The Treasury Secretary Janet Yellen testified before the Senate Finance Committee on Thursday that the federal government is committed to protecting U.S. bank deposits, even if the customer’s account exceeds the FDIC insurance limit of $250,000. However, Yellen admitted that not all depositors will be protected in future bank failures. The FDIC has set up a special fund to pay for the additional protection, which will be paid for out of industry fees. The Federal Reserve has also loosened its borrowing guidelines and set up a separate unlimited facility to offer one-year loans to banks in distress.