The US central bank failed in supervision — existing rules could have been used better, and more actively
It is clear that regulators missed something at Silicon Valley Bank before its collapse — along with its investors, depositors and others. To prevent similar bank failures, US President Joseph Biden has already pledged to push Congress and the Federal Reserve to strengthen banking rules. But the rules already in place could have been used better and more actively.
The obvious thing Congress could do is reverse the 2018 legislation that raised the balance-sheet size threshold where tougher rules kick in for banks that pose a systemic threat. Had this limit not been increased, both SVB and Signature Bank, closed by New York regulators at the weekend, would have been subject to mandatory stress testing and rules designed to help banks survive sudden deposit outflows...
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.
US stock futures rise on Fed rates bets amid moves to limit SVB falloutThe dollar slid as Goldman Sachs predicted the Bank would not lift rates next week, capping the biggest rally for short-dated Treasuries since 1987
Read more »
British tech sector 'at serious risk' after SVB collapse: govtChancellor Jeremy Hunt warned that Britain's technology and life sciences sectors are at 'serious risk' following the closure of the Silicon Valley Bank.
Read more »
Business Maverick: S&P futures jump on SVB backstop, rate bets shift: markets wrapUS stock futures rallied more than 1.5% while the dollar and bond yields tumbled as investors digested the steps taken by regulators to shore up the American financial sector in the wake of Silicon Valley Bank’s failure.
Read more »
SVB collapse seems to be contained, so far …[ICYMI] MoneywebNow podcast with SimonPB, analysis of the Silicon Valley Bank collapse, Citadel on whether there are any positives to the latest GDP numbers and a look at how bias affects investment decisions. Download podcast:
Read more »
SVB failure triggers emergency measures by US authoritiesCustomers will have access to all deposits, regulators said, while the Fed made it easier for banks to borrow from it in emergencies
Read more »
Business Maverick: SVB depositors will get all their money after frantic weekendSilicon Valley Bank customers have spent three tense days wondering if millions of dollars they entrusted to the now-failed bank were lost. They got their answer Sunday night: All their funds – even amounts not insured by the Federal Deposit Insurance Corporation (FDIC) – will be available.
Read more »