Just why the oversight failed remained a hot question among banking experts, with some focusing on the weakness of US rules. With hindsight, there were warning signs ahead of last week's spectacular collapse of Silicon Valley Bank, missed not only by investors, but by bank regulators. Late last week, the Fed released its postmortem on the collapse of Silicon Valley Bank, which criticized mismanagement by bank executives as well as short-sightedness by regulators.Ī Silicon Valley Bank office is seen in Tempe, Arizona, on March 14, 2023. We’re committed to learning the right lessons from this episode.” “We will continue to monitor conditions in the sector. “Conditions in the sector have broadly improved since early March, and the US banking system is sound and resilient,” he said. Powell led off his comments by addressing the state of the US banking industry. This time around, the central bank’s meeting occurred two days after First Republic Bank failed. When the Fed’s policymaking committee last came together in March, that meeting landed two weeks after the biggest bank failures seen since 2008. Here are five takeaways from the central bank’s latest action and Fed Chair Jerome Powell’s news conference:īanking conditions have improved, but there could be ripple effects from the turmoil The Federal Reserve on Wednesday announced its 10th-straight interest rate hike, raising its benchmark rate by another quarter of a point and hinting at a pause as soon as next month.
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