To: Tenchusatsu who wrote (1400923 ) 4/28/2023 3:34:22 PM From: Broken_Clock Respond to "It wasn’t phone calls; it wasn’t social media ," said one Silicon Valley startup founder who wishes to remain anonymous. "It was private chat rooms and message groups. "Wall Street Journal The Federal Reserve’s banking supervisors failed to take forceful action to address growing problems at Silicon Valley Bank before it collapsed last month , the central bank’s top regulator said, signaling a broad push to toughen rules on the industry.Michael Barr, the Fed’s vice chair for supervision, said supervisors didn’t fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity . When supervisors did find risks, they didn’t take sufficient steps to ensure the firm fixed those problems quickly enough, he said in a report Friday. Regulators took control of Santa Clara, Calif.-based SVB on March 10 . The collapse sparked a panic that led to the failure of New York-based Signature Bank and an intervention by financial regulators to protect uninsured depositors at both banks. three of the four top takeaways about the events leading to SVB's collapse are tied to perceived shortcomings with Fed oversight responsibilities.Mr. Barr said mistakes by Fed regulators were driven in part by the Trump-era changes that generally eased rules on midsize banks . He also said a shift in the agency’s culture appears to have resulted in a lighter-touch form of supervision. Those changes “impeded effective supervision by reducing standards, increasing complexity, and promoting a less assertive supervisory approach,” he said. had identified issues regarding interest-rate risk which contributed to SVB's failure, its own process was "too deliberative" and focused on building too much evidence before taking action. In fact, SVB had 31 open supervisory findings - or warnings - from regulators at the time of its failure, a figure 3x that of peer firms, according to the Fed."...the Fed overlooked broader problems in recent years as the bank grew. For example, for a long time, it used metrics for liquidity that suggested SVB had a stable deposit base and rated the bank’s interest-rate risk as satisfactory despite the firm breaching internal risk limits over a number of years." Regulators blame social media for SVB's rapid collapse: 'Complete game ... SVB as panic spread throughout Twitter, along with other social media platforms like Slack and WhatsApp, after the...Federal Reserve Says Social Media Partially At Fault For ... - Forbes social media -fueled panic as one of the chief factors behind the second-largest bank failure in U.S. history, primarily blaming the collapse on poor risk management at Biden blames Trump for Silicon Valley Bank failure - Los Angeles Times Biden blamed the bank collapses on former President Trump's 2018 decision to loosen banking rules enacted in the wake of the 2008 financial crisis. Business Column: As Silicon Valley Bank's red...
