The Fed was the primary federal supervisor of the bank based in Santa Clara, California, that failed last week. The bank was also overseen by the California Department of Financial Protection and Innovation.
about how high to raise its benchmark interest rate in the fight against chronically high inflation.
With the collapse of the two large banks fueling anxiety about other regional banks, the Fed may focus more on boosting confidence in the financial system than on its long-term drive to tame inflation., released Tuesday, shows that price increases remain far higher than the Fed prefers, putting Chair Jerome Powell in a tougher spot. Core prices, which exclude volatile food and energy costs and are seen as a better gauge of longer-run inflation, jumped 0.
Most banks would have sought to make other investments to offset that risk. The Fed could have also forced the bank to raise additional capital. Such an unusually high proportion made Silicon Valley Bank highly susceptible to the risk that depositors would quickly withdraw their money at the first sign of trouble — a classic bank run — which is exactly what happened.
Many critics also point to a 2018 law as softening bank regulations in ways that contributed to Silicon Valley's failure. Pushed by the Trump administration with bipartisan support in Congress, the law exempted banks with $100 billion to $250 billion in assets — Silicon Valley's size — from requirements that included regular examinations of how they would fare in tough economic times, known as “stress tests.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fed funds furtures are repricing the Fed significantlyFed funds futures have rallied that shows that traders see a 33% chance that the Federal Reserve holds rates this month while the market pricing shows
Consulte Mais informação »
LA, Long Beach sign pledge supporting equal pay for womenCalifornia First Partner Jennifer Siebel Newsom launched the California Equal Pay Pledge in 2019.
Consulte Mais informação »
Fed criticized for missing red flags before bank collapseThe Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into what became the second-largest bank failure in U.S. history
Consulte Mais informação »
Fed criticized for missing red flags before bank collapseThe Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into what became the second-largest bank failure in U.S. history.
Consulte Mais informação »
Fed criticized for missing red flags before bank collapseThe Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into the second-largest bank failure in U.S. history.
Consulte Mais informação »
Fed criticized for missing red flags before bank collapseWASHINGTON (AP) — The Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into the second-largest bank failure in U.S.
Consulte Mais informação »