News Wrap: Yellen dismisses fears more banks may collapse

In our news wrap Thursday, it was another turbulent day in the financial world with news of rescues of troubled banks on both sides of the Atlantic, prosecutors in Virginia charged 10 people in the smothering death of a Black man at a state mental hospital and the Pentagon released video showing a Russian fighter jet intercepting a U.S. surveillance drone over the Black Sea.

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  • Geoff Bennett:

    Good evening, and welcome to the "NewsHour."

    It's been another turbulent day in the financial world, with news of rescues of troubled banks on both sides of the Atlantic. Shares in Credit Suisse have bounced back, as it tapped the Swiss Central Bank for more than $50 billion in emergency funding.

  • Amna Nawaz:

    And 11 large U.S. banks put $30 billion in deposits into the troubled First Republic Bank based in San Francisco.

    At a Senate hearing, Treasury Secretary Janet Yellen dismissed fears that the collapse of two other financial institutions might spread.

  • Janet Yellen, U.S. Treasury Secretary:

    I do believe the banking system in the United States is sound and resilient. And we wanted to make sure that the problems at Silicon Valley Bank and Signature Bank didn't undermine confidence in the soundness of banks around the country.

  • Geoff Bennett:

    Despite strains in the banking system, the European Central Bank went ahead today with raising interest rates by another half-a-percentage point to curb inflation.

    All told, the day's news gave Wall Street a boost. The Dow Jones industrial average gained 372 points, or 1 percent, to close at 32246. The Nasdaq rose 2.5 percent. The S&P 500 was up nearly 1.8 percent.

    Prosecutors in Virginia have now charged 10 people in the smothering death of a Black man at a state mental hospital. They say security camera footage shows Irvo Otieno was fatally pinned down last week. In all, seven sheriff's deputies and three hospital employees are charged with second-degree murder.

    Pentagon video released today shows a Russian fighter jet intercepting a U.S. surveillance drone over the Black Sea this week. The drone's camera captured the warplane dumping fuel, apparently trying to blind the unmanned aircraft. Then, after a second approach, there's visible damage to the drone's propeller. U.S. officials say it's proof the Russian jet hit the drone.

  • Brig. Gen. Patrick Ryder, Pentagon Press Secretary:

    Given the reckless and dangerous behavior, and to demonstrate publicly what type of actions the Russians had taken, we felt that it was important to provide this imagery.

  • Geoff Bennett:

    The video does not show an actual collision, and Russia has denied that its plane struck the drone.

    Poland's president announced today his country will send a dozen MiG-29 fighter jets to Ukraine. Transferring the Soviet airplanes would make Poland the first NATO member to respond to Kyiv's requests for fighter jets. The U.S. and other allies have remained reluctant to take that step.

    A U.N.-backed commission is accusing Russia of war crimes in Ukraine. The panel's report today says Russia has committed — quote — "indiscriminate and disproportionate attacks, in violation of international humanitarian law." It also cites attacks on power plants leaving thousands without heat. The report alleges a small number of violations by Ukrainian forces.

    Amnesty International is accusing Iran of torturing children who joined the protests against the regime. The group says detainees as young as 12 have been subjected to beatings, flogging, rape, and electric shocks. Mass protests erupted six months ago after a young woman died in police custody.

    In France, the battle over raising the national retirement age to 64 came to a head today. The government invoked seldom-used powers to impose the change without parliamentary approval and despite mass protests and strikes.

    Special correspondent Ross Cullen reports from Paris.

  • Ross Cullen:

    Booze and shouts echoed throughout the National Assembly, as French Prime Minister Elisabeth Borne pushed the pension bill through without a vote.

    Left-wing lawmakers raised signs and their voices opposing the legislation as they sang the national anthem.

  • Elisabeth Borne, French Prime Minister (through translator):

    Ladies and gentlemen, members of Parliament, we cannot bet on the future of our pensions. This reform is necessary.

  • Ross Cullen:

    Anger has been escalating over the plan to raise France's retirement age from 62 to 64. Nationwide strikes and protests have flared since January.

  • Mireille Herreiberry, Banking Sector Employee (through translator):

    Even if the reform goes through, the inequality gaps, especially for women, will be present. So we must indeed be on the street and always ready to fight this reform.

  • Ross Cullen:

    President Emmanuel Macron hopes raising the retirement age will help France's pension system avert a deficit by the end of the next decade as its population ages. But the pension overhaul lacked the parliamentary support it needed to pass.

    The protest movement has seen millions of people join marches against pension reform since the start of the year. The fact the government has used this controversial, but constitutional way to bypass Parliament is only likely to fuel the fire of the demonstrators and the striking workers to continue their social action.

    Garbage workers are among those still on strike. Trash is overflowing in the shadow of the Eiffel Tower and all across Paris, repulsing locals and tourists alike.

    Deen James manages a restaurant in the capital city.

  • Deen James, Restaurant Manager (through translator):

    It's complicated because you have rats out in the morning. You also can't have people sit outside.

  • Ross Cullen:

    Today's move will also surely trigger a no-confidence vote in Macron's government, but that's likely to fail, since most Conservative lawmakers would oppose it.

    For the "PBS NewsHour," I'm Ross Cullen in Paris.

  • Geoff Bennett:

    French trade unions vow to intensify the strikes that have crippled energy shipments and disrupted transit services.

    And health care workers in England today reached a pay raise agreement to end the worst strikes there since the 1980s. Nurses, ambulance crews and others would get a lump sum payment this year and a 5 percent raise next year.

    Still to come on the "PBS NewsHour": Congresswoman Zoe Lofgren discusses tougher banking regulations; Minnesota's governor on how his state could be a national model for transgender rights; and why archaeological treasure hunters are scanning the banks of the Thames River in London.

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