The U.S. Federal Reserve announced on Monday it is reviewing its oversight of Silicon Valley Bank in the wake of its abrupt failure Friday.
A view of a logo at the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki
WASHINGTON, March 13 - The U.S. Federal Reserve announced on Monday it is reviewing its oversight of Silicon Valley BankIn a statement, Fed Chairman Jerome Powell said the bank's failure, which set off a wave of concern over the banking system, demanded a "thorough, transparent, and swift review." Fed Vice Chairman for Supervision Michael Barr is leading the review, and results will be publicly released by May 1.
"We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience," Barr said in a statement. The move from the Fed comes as policymakers grapple with how the bank, which failed within days of announcing it had to raise capital to shore up its finances, ignited fear across the banking system. Regulators were forced to announce relief measures on Sunday, reassuring customers that all the deposits from both that bank and New York-based Signature Bank
, which was closed by regulators Sunday, would be covered. The Fed also announced a new facility to give banks access to emergency funds, in a bid to calm broader fears in the market.
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