Michael Barr, the vice chairman for supervision at the Federal Reserve, is leading an internal review of the agency’s oversight of Silicon Valley Bank.
The US Federal Reserve’s top bank regulator say supervisors could have done more to keep tabs onThe acknowledgment from Michael Barr, the vice chairman for supervision at the Federal Reserve, was the most direct yet by a government official of possible oversight lapses leading up to the bank’s failures. Mr Barr is leading an internal review of the agency’s oversight of Silicon Valley Bank, known as SVB.
Mr Barr told the Senate Banking Committee on Wednesday that supervisors issued multiple warnings to SVB, and called its failure “The Federal Deposit Insurance Corp took over SVB and Signature Bank as runs at the two lenders worsened earlier this month. During Wednesday’s hearing, FDIC chairman Martin Gruenberg also signalled that regulators bore some responsibility for SVB’s failure.
“Was there adequate planning for a large-scale bank run?” McHenry asked. Regulators in California have said investors and depositors tried to pull $US42 billion from the bank on March 9.The speed of the bank runs, particularly at SVB, has also sparked concerns over mobile banking.
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