The Federal Reserve issued a detailed and scathing assessment on Friday of its failure to identify problems and push for fixes at Silicon Valley Bank before the lender's collapse, and promised tougher supervision and stricter rules for banks.
BANK POLICY INSTITUTE PRESIDENT AND CEO GREG BAER
"Lastly, we are disappointed that the Fed's report has proceeded to make policy recommendations without input from the public or Congress and without the benefit of a broader and deeper investigation. Particularly remarkable is a reflexive and largely unexplained demand for higher capital requirements, which no independent observer has identified as playing any material role in SVB's failure.
"Finally, we want to highlight what these reports also make clear: the failures of these individual institutions reflect the unique circumstances at these banks and do not reflect the overall health and vitality of the U.S. banking sector."Today's reports confirm there were a multitude of factors contributing to the collapse of these institutions, with each bank facing challenges that were unique to them.
"Such transparency and candor is healthy to identify needed regulatory fixes to reduce the likelihood of further collapses. Nevertheless, regulatory oversight of bank practices also depends on the competencies and strengths of the individuals tasked with conducting the examinations and supervision. Clearly, bank examiners and off-site supervisors were not empowered to bring these issues to decision makers at the Fed to act. The former administration seemed eager to undo Dodd-Frank Act""The report confirms the theories that market observers had been suspecting and the need for improving capital and liquidity requirements for mid-sized banks will be addressed.
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Fed plans broad revamp of bank oversight after SVB failureThe Federal Reserve issued a detailed and scathing assessment on Friday of its failure to identify problems and push for fixes at Silicon Valley Bank before the U.S. lender's collapse, and promised tougher supervision and stricter rules for banks.
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Fed report on SVB collapse faults bank's managers — and central bank regulatorsThe Fed blamed failures on mismanagement and supervisory failures, compounded by a dose of social media frenzy.
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Fed says it must strengthen banking rules after SVB’s collapseIn a scathing report, the Federal Reserve on Friday outlined a series of disastrous decisions that led to the downfall of Silicon Valley Bank — including failures by the central bank’s own supervisors to ward off last month’s crisis.
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Fed autopsy on SVB faults bank's management — and its own oversight | CNN BusinessThe Federal Reserve detailed serious management oversights by the executives of Silicon Valley Bank, which collapsed six weeks ago and sent financial markets reeling.
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SVB collapse: Fed says it failed to 'take forceful enough action'The Federal Reserve said in a postmortem report that the collapse of Silicon Valley Bank represented failure across the board, including at the central bank.
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As Fed Probe Shows Deregulation Fueled SVB Crisis, Warren Says Powell 'Must Be Held Accountable'Sen. Elizabeth Warren said the Federal Reserve chair 'failed in his responsibility to supervise and regulate banks that posed a systemic risk to our economy.'
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