Bank of Silicon Valley: US Fed admits regulatory failures
The US Federal Reserve on Friday called for greater banking supervision as it released a detailed report on last month’s collapse of Silicon Valley Bank (SVB).
SVB was the go-to bank for venture capital firms and tech start-ups for years, but spectacularly failed on March 10th.
The collapse sparked a crisis of confidence in the banking industry, leading to the bankruptcy of New York-based Signature Bank and the merger of Credit Suisse with rival UBS.
Prior to the failures, regulators focused primarily on the largest US banks, which were considered critical to financial stability, but the vulnerability of the entire banking system to smaller bank failures has forced a reassessment.
Source: DW
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