March 14 (UPI) — Days after Silicon Valley Bank failed and sent shockwaves through the financial system, the Federal Reserve Board said it has launched a review of its oversight of the tech startup lender.
Federal Reserve Chair Jerome Powell announced the review of its supervision and regulation of Silicon Valley Bank on Monday, saying it will be led by Vice Chair for Supervision Michael Barr.
“The events surrounding Silicon Valley Bank demand a thorough, transparent and swift review by the Federal Reserve,” Powell said in a statement. “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.”
California regulators shut Silicon Valley Bank down on Friday, making it the first FDIC-insured bank to fail in more than two years. Days later, regulators closed Signature Bank, another tech-focused lender.
In the wake of their closures, federal agencies have attempted to assuage worries about the system, stating it “remains resilient and on solid foundation” due to reforms put in place following the 2008 financial crisis that saw many banks fail.
President Joe Biden earlier Monday said swift action was taken to protect depositors at the two banks and that the public “can have confidence that the banking system is safe.”
“Your deposits will be there when you need them,” he said.
The Federal Reserve Board said its review will be made public May 1.
COMMENTS
Please let us know if you're having issues with commenting.