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FameEX Hot Topics | Internal Probe Launched into US Federal Reserve Regarding Silicon Valley Bank Failure

2023-03-14 11:46:30

The Federal Reserve is conducting an investigation into the factors that led to the collapse of Silicon Valley Bank. The bank failed in 2022, leading to significant losses for its depositors. Federal Reserve Chair Jerome Powell stated that a "careful and thoughtful" review is necessary to understand how the bank collapsed under the Fed's watch.

The investigation will focus on how the Federal Reserve supervised and regulated the now-collapsed financial institution. It will also analyze the broader factors that contributed to the bank's failure. The collapse of Silicon Valley Bank has raised concerns about the stability of the US banking system and the role of regulators in ensuring its safety.

The Federal Reserve's investigation is expected to be comprehensive and may take several months to complete. It will involve a thorough analysis of the bank's operations, financial statements, and regulatory compliance history. The Fed will also review its own supervision of the bank, including whether it adequately monitored the bank's risk management practices.

The investigation comes as the Federal Reserve faces growing scrutiny from Congress and the public over its regulatory role. Many lawmakers and financial experts have criticized the Fed for being too lax in its oversight of banks and financial institutions, particularly in the years leading up to the 2008 financial crisis.

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