US Fed Reserve Admits To Own Failure In Identifying Startup Bank Troubles
NDTV
"Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned," Federal Reserve vice chair for supervision Michael Barr said in a statement accompanying the report.
The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank (SVB) last month.
"Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned," Federal Reserve vice chair for supervision Michael Barr said in a statement accompanying the report.
Michael Barr said SVB's management failed to adequately manage risk prior to the bank's swift collapse, while Fed supervisors failed to take forceful enough action after they had identified issues at the Californmian high-tech lender.
SVB's failure on March 10 after taking on too much interest-rate risk caused shock waves throughout the banking sector, and led to the failure of another regional US bank and the merger under pressure of Swiss investment banking giant Credit Suisse.
