![](https://i.imgur.com/CLvY2jA.png")
29-03-2023, 07:14 AM
By CHRISTOPHER RUGABER
today
WASHINGTON (AP) — The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems.
The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate Banking Committee hearing that the Fed is considering whether stronger bank rules are needed to prevent a similar failure in the future.
Silicon Valley Bank’s management was deficient, Barr said. In particular, he said, the interest rate model the bank used “was not at all aligned with reality.”
......
Republican members of the committee focused their fire on the Fed and other regulators for failing to prevent SVB’s failure. The Fed has been criticized by advocacy groups for not adequately responding to red flags about the bank’s management.
......
Last September, before the banks’ collapse, Barr had said he was conducting a “holistic review” of the government’s capital requirements. He suggested that he might support toughening those requirements, which prompted criticism from the banking industry and Republican senators.
https://apnews.com/article/bank-failure-...0159363026
today
WASHINGTON (AP) — The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems.
The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate Banking Committee hearing that the Fed is considering whether stronger bank rules are needed to prevent a similar failure in the future.
Silicon Valley Bank’s management was deficient, Barr said. In particular, he said, the interest rate model the bank used “was not at all aligned with reality.”
......
Republican members of the committee focused their fire on the Fed and other regulators for failing to prevent SVB’s failure. The Fed has been criticized by advocacy groups for not adequately responding to red flags about the bank’s management.
......
Last September, before the banks’ collapse, Barr had said he was conducting a “holistic review” of the government’s capital requirements. He suggested that he might support toughening those requirements, which prompted criticism from the banking industry and Republican senators.
https://apnews.com/article/bank-failure-...0159363026
