.sffed President MaryDalyEcon could offer Republicans and Democrats a rare point of unity as lawmakers trade blame for the collapse of SVB earlier this month. That’s because Daly’s own failure to act has drawn ire from both sides of the aisle.
That’s because Daly’s failure to act on clear signs of weakness at the bank under her supervision has drawn ire from both sides of the aisle.Critics agree that the San Francisco Federal Reserve should have spotted warnings about Silicon Valley Bank’s balance sheets long before the bank shuttered and sparked unease about the banking industry.“The Fed screwed up.
For their part, Democrats have blamed a 2018 law that exempted some banks, SVB included, from the most strenuous regulations applied to banking giants. Klein compared the stricter oversight the San Francisco Fed could have performed, if it wanted, to an “advanced test,” while the oversight SVB did receive was more like a “basic test” in school.
Sen. Elizabeth Warren signaled potential scrutiny may lie ahead for Daly when she said on Sunday that she had lost confidence in Daly specifically.Fed officials reportedly did raise several concerns with SVB in 2019 and 2021, mostly related to the bank's processes for determining risk management. What the Fed did to ensure its concerns got addressed, and whether regulators warned of the particular factors that brought down the bank or just of procedural weaknesses, remains to be seen.
SVB was the largest bank in her district, and its client base consisted largely of depositors reliant on a technology industry that had publicly struggled for months. Layoffs and falling revenues in the tech sector had splashed across headlines for months before SVB’s collapse. First Republic, another regional bank seen as facing the same kinds of risks as SVB, had fewer uninsured deposits at 68%, according to a Business Insider analysis.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
'Muni Raised Me': A San Francisco art show for San Franciscans'I visit a lot of art galleries, and I usually take Muni to get to them. But, until recently, I’d never seen a Muni bus inside an art gallery.'
Consulte Mais informação »
First Citizens submits offer for all of failed SVB: SourceFirst Citizens BancShares, Inc. has submitted an offer to buy all of failed Silicon Valley Bank, according to a person familiar with the matter.
Consulte Mais informação »
'Operation Choke Point 2.0' may have contributed to SVB collapse: MulvaneyDonald Trump’s former Acting White House Chief of Staff, Mick Mulvaney, spoke of the rumored 'Operation Choke Point 2.0' suggesting it would hurt financial stability and may have contributed to the collapse of Silicon Valley Bank (SVB).
Consulte Mais informação »
Sen. Warner downplays SVB campaign donations, says bank failure likely not caused by lax regulationsSen. Mark Warner, a member of the Senate Banking Committee who was among several lawmakers to receive campaign contributions from the failed Silicon Valley Bank, downplayed the donations on Monday by saying he was unswayed by them.
Consulte Mais informação »