Regulators and Lawmakers Investigate SVB Collapse and Bank Rules
TL;DR Summary
The Federal Reserve approved Silicon Valley Bank's merger application in 2021, insisting that the new, larger institution would present no significant danger to the wider financial system. However, when financial distress hit 20 months later, the Federal Reserve board unanimously voted, alongside the Federal Deposit Insurance Corporation, to invoke the rare systemic risk exemption, giving the government the authority to guarantee Silicon Valley Bank’s uninsured deposits. The Federal Reserve announced it will review its oversight of the bank leading up to its collapse.
- Fed Insisted SVB Posed No Serious Risk To Financial System The Lever
- After SVB Collapse, Fed and Lawmakers Eye Bank Rules The New York Times
- DOJ and SEC launch investigations into the collapse of SVB CNBC Television
- Sen. Warren Blasts Fed Chair Powell For Triggering Banks' Collapse Newsmax
- Fallout from Silicon Valley bank failures l GMA Good Morning America
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