Saturday , October 23 2021

Mnuchin calls major US banks after huge stock market crash



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US Secretary of the Treasury Steven Mnuchin December 3, 2018Image copyright
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US Treasury Secretary Steven Mnuchin tweeted details of their talks, saying the banks had "ample liquidity."

US Treasury Secretary Steven Mnuchin made calls to the heads of the country's six largest banks, an initiative to reassure investors after steep declines in US stocks.

Last week, US stocks suffered one of the biggest weekly declines in a decade, with rising interest rates and tensions between the US and China that shook markets.

Mnuchin said banks have confirmed that they have "ample liquidity" for operations.

It also occurs amidst a partial shutdown of the government over spending plans.

"O [bank’s chief executives] confirmed that they have ample liquidity available for consumer lending, business markets and all other market operations, "the Treasury said in a statement attached to a tweet from Mr. Mnuchin.

"[Mr Mnuchin] Also confirmed that they have not experienced any settlement or margin problems, and that markets continue to function properly, "said the Treasury statement.

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Sarah Porter

All three US indexes closed lower last week, with Nasdaq focused on technology falling 20 percent from its peak, putting it in so-called "bear market" territory.

US investors are worried about a number of factors, including slowing economic growth at home and internationally.

In addition, a partial shutdown by the United States government began at midnight on Friday after opposition Democrats resisted President Donald Trump's $ 5 billion lawsuit over the border wall of Mexico .

  • US closure may extend into new year
  • US stocks suffer worst week in a decade

The shutdown of budget spending may continue until the next Congress opens on January 3.

Mr. Mnuchin is now set to meet with the President's Working Group on Monday, the Treasury statement said.

The group includes market regulators and Federal Reserve governors, among others. They will discuss "coordinating efforts to ensure normal market operations," the statement said.

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