Treasury Secretary Janet Yellen cut the legs out of stock markets yesterday in her testimony to the Senate when she said that no further action was coming for depositors. Today she's appearing in the House and ZeroHedge notes that her prepared text has been altered.
Here is the paragraph that graced her speech yesterday:
As I said last week, the U.S. banking system is sound. The federal government’s recent actions have demonstrated our resolute commitment to take the necessary steps to ensure that depositors’ savings remain safe.
Today, that entire paragraph has been deleted and replaced with the following:
“As I have said, we have used important tools to act quickly to prevent contagion. And they are tools we could use again. The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.”
The shift in Yellen's testimony led to a short-lives spike in regional banks.
However the change in commentary doesn't appear to have resulted in a lasting change as the index now retests the lows.
