Federal Reserve launches review of Silicon Valley Bank collapse
The Federal Reserve Board announced Monday it will review its oversight and regulation of Silicon Valley Bank, which collapsed last week in the country’s largest bank failure since the 2008 financial crisis.
Fed Chair Jerome Powell said in a statement that “the events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve.”
The central bank named its vice chair for supervision, Michael Barr, who was confirmed last summer, to lead the review.
California regulators shut down the tech-focused bank on Friday, sparking questions about the broader fitness of the U.S. banking system.
Administration officials have taken action to make sure Silicon Valley Bank depositors have access to all their funds and have stressed that the economy is on solid ground.
“The bottom line is this: Americans can rest assured that our banking system is safe. Your deposits are safe,” President Biden said Monday.
The Fed’s review is set for public release by May 1, according to the release.
“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 of the bank failure.
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