The nation’s top financial regulator is asserting that Silicon Valley Bank’s own management was largely to blame for the bank’s failure earlier this month.
Federal Reserve Board Vice Chair for Supervision Michael Barr listens to participants at a hearing at the Federal Reserve building, Sept. 23, 2022, in Washington.
Silicon Valley Bank, based in Santa Clara, California, was seized by the Federal Deposit Insurance Corp. on March 10 in the second-largest bank failure in U.S. history. Late Sunday, the FDIC said that First Citizens Bank, based in Raleigh, North Carolina, had agreed to buy about one third of Silicon Valley’s assets — about $72 billion — at a discount of about $16.5 billion.
Members of Congress will surely use the hearings to stake out their positions on issues raised by the bank failures. These issues include whether the $250,000 limit on federal deposit insurance should be raised, a change that would require Congress’ approval. The 2018 law exempted banks with assets between $100 billion to $250 billion — Silicon Valley’s size — from requirements that it maintain sufficient cash, or liquidity, to cover 30 days of withdrawals. It also meant that banks of that size were subject less often to so-called “stress tests,” which sought to evaluate how they would fare in a sharp recession or a financial meltdown.
“You’re never going to write liquidity regulations that are strict enough to prevent that, when there’s a run on a fundamentally unviable bank,” Kelly said.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Silicon Valley Bank bought, but Silicon Valley has already moved on‘We don’t even think about it anymore except to say, “Oh my gosh, remember how crazy it was?”‘
Weiterlesen »
Why almost everyone failed to predict Silicon Valley Bank's collapse | CNN BusinessTwo weeks ago few people outside the tech industry had even heard of Silicon Valley Bank, the midsize California lender whose rapid implosion would end up shaking the foundations of the entire global financial system.
Weiterlesen »
PolitiFact - Claim that Silicon Valley Bank donated $73 million to Black Lives Matter is unsupportedSilicon Valley Bank’s charitable contributions primarily went to groups and initiatives that had no clear association with the Black Lives Matter movement.
Weiterlesen »
Silicon Valley Rep. Ro Khanna opts against Senate run; endorses East Bay Rep. Barbara LeeSilicon Valley Rep. Ro Khanna removed himself from consideration in the race to succeed longtime California Sen. Dianne Feinstein on Sunday morning, opting instead to side with another Bay Area rep…
Weiterlesen »
Sen. Mark Warner says he’ll return Silicon Valley Bank donations if evidence of ‘malfeasance’Sen. Mark Warner, D-Va., says he will receive thousands in campaign donations he received from the failed Silicon Valley Bank if there is evidence of malfeasance.
Weiterlesen »