SVB collapse: Federal Reserve launches review of bank failure

THe Federal Reserve Launched a review of its oversight, regulation and compliance Silicon Valley Bank Monday was the first day after Friday’s bank collapse.

Fed Chairman Jerome Powell Announced the appointment of Vice Chairman for Supervision Michael Barr The review would be led by him. On May 1, 2023, the public will receive the report.

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“The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve,” Powell In a news release.

SVB, the 16th-largest federally insured bank, was founded in 1996. Reported by regulators. Friday. After attempts to raise capital failed, the bank shut down. The bank’s failure is the biggest since 2008. Investors were alarmed when the bank declared that it had sold off Treasurys at loss earlier in the week, leading to a bank failure.

Barr supported the review and agreed that the bank closing deserved careful scrutiny of the supervision, regulation, and use of reserve funds on the firm.

“We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience,” Barr stated this in the release.

There are concerns that SVB may fail and Signature Bank will close down in New York. Closed Sunday’s economic crisis was repeated, White House press secretary Karine Jean Pierre According to reporters, that was not the truth.

“This is not 2008,” Jean-Pierre said. “The Obama-Biden administration put in place tough requirements to ensure banks have more capital and sufficient liquid assets. Depositors have more protection for their deposits, and regulators have the tools to supervise larger institutions that deal with disruption