- Treasury secretary asked about risks with nonbanks at hearing
- Yellen highlights nonbanks’ lack of access to funding backstop
Treasury Secretary Janet Yellen said US regulators are monitoring risks stemming from nonbank mortgage lenders, and cautioned that a failure of one of them is possible in the case of market strains.
“FSOC is very focused on that because nonbank mortgage companies lack access to deposits, which banks have,” Yellen said at the Senate Banking Committee Thursday, referring to the Financial Stability Oversight Council. The FSOC groups the main US financial regulators.
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