Former Goldman Sachs CEO Lloyd Blankfein and Gary Cohn Weigh in on Whether Americans’ Money is Safe Amid Banking Industry Failures

As the banking industry faces a wave of failures, many Americans are asking if their money is safe. To answer this question, former Goldman Sachs CEO Lloyd Blankfein appeared on Fareed Zakaria GPS Sunday, where he said the answer is “kind of a yes with an ellipsis.”

The Federal Reserve used to have the power to issue a blanket guarantee of all deposits in the system, but this power was taken away in 2008. Instead, the central bank along with the Federal Deposit Insurance Corporation and the Treasury Department, have the power to guarantee deposits bank by bank if they find a systemic emergency.

On Sunday, March 19th, former top economic adviser in the Trump White House and current vice chairman of IBM, Gary Cohn, appeared on Face the Nation to discuss the banking industry. Cohn was asked about the potential indictment of the 45th president, who has called for protests and raised concerns about violence.

Cohn noted that the banking industry is facing a wave of failures, including Silicon Valley Bank, Signature Bank, Credit Suisse, and First Republic. He said that the Federal Reserve is implying it will regard any bank run or event as a systemic emergency, and that the central bank, FDIC, and Treasury Department have the power to guarantee deposits bank by bank in such an event.

Overall, Cohn said that the answer to the question of whether Americans’ money is safe is “kind of a yes with an ellipsis.” He noted that the Federal Reserve, FDIC, and Treasury Department have the power to guarantee deposits bank by bank if they find a systemic emergency.