Some crises seem to come out of the blue, while others take place in slow motion. The failure of Silicon Valley Bank (SVB) qualifies for the former, while the failure of First Republic Bank (FRB) w…
It wasn’t a surprise when the FDIC announced that it was seizing and selling the bulk of the institution to JP Morgan Chase, but it capped an intense seven-week period that resulted in shuttering of three mid-sized U.S. banks: SVB, Signature Bank and FRB.
Coincidentally, the failure of FRB occurred just days after the Federal Reserve’s report on what happened at SVB. The 118-page Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank provided a rare look into the opaque and often-shrouded processes that occurs at the nation’s central bank and at its 12 regional banks.
According to Michael Barr, the current vice chair of supervision at the Federal Reserve, Fed officials “did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity.” And when spotting problems, “they did not take sufficient steps to ensure that Silicon Valley Bank fixed those problems quickly enough.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank borrowing from the Fed falls sharply after First Republic saleThe amount of money U.S. banks borrowed from the Federal Reserve fell by almost half last week, mostly because of the distressed sale of First Republic.
Read more »
US bank lending touches record as deposits fall, Fed data showDeposits at U.S. commercial banks fell toward the end of April to the lowest in nearly two years, data released on Friday by the Federal Reserve showed, while overall credit provided by banks moved up, led by a record level of outstanding loans and leases.
Read more »
Biden sends wife Jill to King Charles’ coronation SaturdayPresident Joe Biden has dispatched his wife to represent the United States at Saturday’s coronation of King Charles III, the late queen’s eldest son.
Read more »
Biden sends wife Jill to King Charles’ coronation SaturdayPresident Joe Biden has dispatched his wife to represent the United States at Saturday’s coronation of King Charles III, the late queen’s eldest son.
Read more »
Biden sends wife Jill to King Charles' coronation SaturdayJill Biden has joined Prince Harry to celebrate the athletic grit of wounded service members.
Read more »
First lady Jill Biden arrives in London for Charles’ coronationFirst lady Jill Biden stopped by 10 Downing Street in London on Friday to meet the prime minister’s wife and kick off a busy round of events around the weekend coronation of King Charles III.
Read more »