This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-65428206
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Fed says it failed to take forceful action on SVB | Fed says it failed to take forceful action on SVB |
| (32 minutes later) | |
| A push at the top of the US central bank for looser regulation led officials to miss warning signs at Silicon Valley Bank, according to a review of the collapse of the firm. | A push at the top of the US central bank for looser regulation led officials to miss warning signs at Silicon Valley Bank, according to a review of the collapse of the firm. |
| The conclusion is one of the main findings from the Federal Reserve's investigation of the failure, the largest in the US since 2008. | The conclusion is one of the main findings from the Federal Reserve's investigation of the failure, the largest in the US since 2008. |
| The episode sparked global fears about the state of the banking sector. | The episode sparked global fears about the state of the banking sector. |
| The report comes as another US lender, First Republic, remains in trouble. | The report comes as another US lender, First Republic, remains in trouble. |
| US regulators are reported to be working on a rescue for the struggling firm, which was the 14th largest bank in the US at the end of last year. | US regulators are reported to be working on a rescue for the struggling firm, which was the 14th largest bank in the US at the end of last year. |
| Michael Barr, the Federal Reserve's vice chair for supervision, who led the review, said the US central bank would be toughening its rules in response to what it had learned from SVB's demise. | |
| "Federal Reserve supervisors failed to take forceful enough action," he said, pointing to regulatory standards that were "too low", supervision that did not work with urgency, and risks to the wider system posed by troubles at a mid-size bank that Fed policies had missed. | |
| "Following SVB's failure, we must strengthen the Federal Reserve's supervision and regulation." | |
| The head of the Federal Reserve, chairman Jerome Powell, said he welcomed the "thorough and self-critical report". | |
| "I agree with and support his recommendations to address our rules and supervisory practices, and I am confident they will lead to a stronger and more resilient banking system," he said. | |
| The report comes just weeks after regulators took over SVB, after its announcement that it needed to raise money prompted customers to panic and withdraw billions of dollars overnight. | |
| The report said the bank was "uniquely vulnerable" to problems due to "widespread managerial weaknesses, a highly concentrated business model, and a reliance on uninsured deposits". | |
| Related Topics | Related Topics |
| US Federal Reserve | US Federal Reserve |
| Banking | Banking |