SVB's Mismanagement and Rapid Withdrawals Lead to Regulatory Crackdown.
TL;DR Summary
The Federal Reserve's head of banking supervision, Michael Barr, said he was made aware of Silicon Valley Bank's interest rate risk-related issues in mid-February, just weeks before its failure. Fed staff had previously raised concerns over SVB's interest rate risk and liquidity management in November 2021 and barred the bank from growing through mergers or acquisitions in mid-2022. However, Barr said he was not made aware of the issues until a staff presentation last month.
Topics:business#banking-supervision#federal-reserve#finance#interest-rate-risk#senate-banking-committee#silicon-valley-bank
- Fed's Michael Barr learned of risks at SVB weeks before it failed New York Post
- SVB customers tried to withdraw nearly all the bank’s deposits over two days, Fed's Barr testifies CNBC
- Silicon Valley Bank’s rapid withdrawals, management missteps created perfect storm Fox Business
- Banks face regulation crackdown after crisis CNN
- Fmr. Deputy Treasury Secretary Sarah Bloom Raskin on the SVB and Signature Bank hearings CNBC Television
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