Tag

Bank Oversight

All articles tagged with #bank oversight

politics2 years ago•2 min saved

Sinema defends ties to Wall Street with proposed bill targeting failed bank leaders.

Arizona Senator Kyrsten Sinema, who has been criticized for her ties to Wall Street, has taken credit for helping broker legislation that would target executives of failed banks. Sinema cited the bill approved this week by the Senate Banking, Housing and Urban Affairs Committee as an example of the bipartisan dealmaking she says is often lacking from Congress. The measure responds to the collapse this year of Silicon Valley Bank, the second-largest bank failure in U.S. history, followed by the demise of Signature Bank and First Republic Bank. Sinema said she pushed to include a provision requiring the Federal Reserve to report on efforts to improve bank oversight.

via AOL|

#bank-oversight #bipartisan-dealmaking #kyrsten-sinema

finance2 years ago•3 min saved

The Fed's Investigation into Silicon Valley Bank and its Fallout.

The Federal Reserve is set to release a report on Friday examining its oversight of Silicon Valley Bank, which collapsed in mid-March, in the largest bank failure since the 2008 financial crisis. The review was overseen by Michael S. Barr, the central bank’s head of supervision, and the investigation could answer questions about what went wrong with the bank's supervision. The report will also examine whether there was an issue with the Fed’s culture around supervision or whether the existing rules were lacking.

via The New York Times|

#bank-failure #bank-oversight #federal-reserve

business2 years ago•7 min saved

Trump's deregulation led to Silicon Valley bank's downfall.

A change in the way regional banks were supervised during the Trump era may have contributed to the demise of Silicon Valley Bank. The bank's move to a more rigorous oversight group was delayed due to recalibrations in bank supervision, which treated even sizable and rapidly ballooning banks with a light touch. By the time Silicon Valley Bank's problems were fully recognized, it was already too late to fix them easily. The Federal Reserve is conducting an internal investigation, and the White House is calling for regulators to consider reinstating stronger rules for banks with assets of $100 billion to $250 billion.

via The New York Times|

#bank-oversight #banking-regulation #business

business2 years ago

"Bank Oversight Failures and Regulatory Probes: The Thankless Job of Chief Risk Officers"

Bank regulators failed to adapt to the changing economy and risk management practices, leading to the 2008 financial crisis. Despite warnings from industry insiders and academics, regulators continued to rely on outdated models and failed to recognize the growing risks in the financial system. The crisis exposed the need for more effective oversight and regulation of banks to prevent future economic disasters.

via The Wall Street Journal|

#bank-oversight #business #economy

finance2 years ago•8 min saved

The Fed's Oversight Failures and Bank Collapses: A Global Concern.

The collapse of Silicon Valley Bank, the largest bank failure since 2008, has prompted intense scrutiny of the Federal Reserve's oversight as many wonder why the bank's vulnerabilities were not promptly fixed. The Fed has already announced a review of the bank's collapse, with the inquiry set to conclude by May 1. Congress is also planning to dig into what went awry, with committees in both the Senate and House planning hearings next week on the recent bank collapses.

via The New York Times|

#bank-failure #bank-oversight #federal-reserve

finance2 years ago•7 min saved

The Fed's Warnings Ignored: The Collapse of Silicon Valley Bank.

The Federal Reserve had been aware of Silicon Valley Bank's risky practices for over a year, but its warnings were insufficient to prevent the bank's collapse. The bank was using an incorrect model to assess its own risks amid rising interest rates and was flagged for deficiencies in risk management. Despite repeated warnings, the bank did not fix its vulnerabilities, and by early 2023, it was in a "horizontal review" that identified additional deficiencies. The bank's collapse has raised questions about bank oversight and the need for stricter regulations for big, but not huge, banks. The Fed has initiated an investigation into what went wrong with the bank's oversight, and the inquiry's results are expected to be publicly released by May 1.

via The New York Times|

#bank-collapse #bank-oversight #federal-reserve