The Federal Reserve’s head of banking supervision said he was first made aware of the interest rate risk-related issues at Silicon Valley Bank in mid-February.
Fed Vice Chairman for Supervision Michael Barr told the Senate Banking Committee that Fed staff made a presentation to the central bank’s board in mid-February in which staff indicated they were following up with SVB on risk related to rising interest rates.
“The staff highlighted the interest-rate risk that was present at Silicon Valley Bank and indicated that they were in the middle of a further review,” Barr said.Supervisory staff at the Fed had previously raised serious concerns over SVB’s interest-rate risk and liquidity management and demanded fixes from the bank in November 2021, Barr said.
In mid-2022, Fed staff deemed the bank’s management to be deficient and barred the bank from growing through mergers or acquisitions, Barr said. Fed Vice Chairman for Supervision Michael Barr said he was made aware of Silicon Vallley Bank’s risks in mid-February.Supervisory staff at the Federal Reserve had previously raised serious concerns over SVB’s interest-rate risk in 2021, Barr said.Fed supervisors brought those issues to SVB’s chief financial officer in October 2022, he said, and raised additional concerns to SVB management in November.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed raised concerns over SVB risk management as early as 2021, Michael Barr says“SVB failed because the bank’s management did not effectively manage its interest rate and liquidity risk and the bank then suffered a devastating and unexpected run by its uninsured depositors,” Fed Vice Chair Michael Barr will tell Congress Tuesday.
Read more »
Gold drops as investors digest SVB deal amid banking risksGold prices fell for a second straight session on Monday as the U.S. dollar firmed, while investors weighed measures taken by authorities to assuage fears of a crisis in the global banking sector.
Read more »
Wall St off session highs as investors weigh bank risks after SVB dealWall Street's main indexes cut gains on Monday as investors assessed risks to the banking sector following a buyout deal for Silicon Valley Bank's assets, while a rise in Treasury yields pressured rate-sensitive technology and other growth stocks.
Read more »
Banking hearings on SVB collapse, GDP and Fed’s inflation gauge top week aheadBanking turmoil will be the focus of hearings in the coming week as investors monitor the future of firms including First Republic while also digesting home price and inflation data.
Read more »
Asia wary, US stock futures up on SVB reportsInvestors hope that authorities are working to ring-fence stress in the global banking system.
Read more »
Indian shares open higher as SVB acquisition hopes aid sentimentIndian shares opened higher on Monday after reports of advanced talks for the acquisition of collapsed Silicon Valley Bank brought relief to markets, although fears of contagion in the global banking system lingered.
Read more »