![]() ![]() (The shift in regulation came after the 2018 passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which amended the post-financial crisis Dodd-Frank Wall Street Reform and Consumer Protection Act to loosen regulations for small and mid-sized banks.) The report calls into question Barr’s predecessor, Randal Quarles’ full-throated defense of “tailoring” banking rules for mid-sized institutions. When banks lobbied to ease banking rules, the result was a reduction in supervisory standards, more complexity, and most alarmingly, “a less assertive supervisory approach,” Barr added. The report may also be instructive as to how bank regulation needs to adapt and change to the current fast-paced exchange of information, which can push an ailing bank towards insolvency in a matter of days. The 118-page Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank provided a rare look into the opaque and often-shrouded processes that occurs at the nation’s central bank and at its 12 regional banks. Investors punished the stock over the past two months: on March 8th, FRB was trading at $115 and at the end of trading on its last day of as a public company (April 28), the stock closed at $3.51.Ĭoincidentally, the failure of FRB occurred just days after the Federal Reserve’s report on what happened at SVB. banks: SVB, Signature Bank and FRB.įirst Republic was the 14th biggest bank in the country and like SVB, had a wealthy customer base that maintained deposits well above the $250,000 FDIC insurance limit.Īs problems escalated in March, many of FRB’s depositors fled - according to the company’s Q1 2023 earnings report, $102 billion of deposits left during the first three months of the year, more than half of the $176 billion that was on hand at the end of last year, and far more than the $30 billion of deposits that 11 of the nation’s largest banks injected to help FRB stay afloat. It wasn’t a surprise when the FDIC announced that it was seizing and selling the bulk of the institution to JP Morgan Chase, but it capped an intense seven-week period that resulted in shuttering of three mid-sized U.S. The worst inflation of all: Record levels of debt ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |