Silicon Valley Bank failed because of regulators' sluggishness, Fed's Mary Daly says | CNN Business

Abstraction: SF Fed president blames regulatory slowness for SVB collapse

Key points:

• SF Fed President Mary Daly said SVB failed due to "slowness between when things are spotted and when enforcement actions are taken," not attributing blame to herself given her non-supervisory role
• Fed Vice Chair Michael Barr's spring post-mortem of SVB, Signature Bank, and First Republic Bank similarly flagged supervisory slowness as a key factor
• Barr proposed stricter capital requirements for banks with $100B+ in assets, aligning them with $700B+ bank standards
• Fed officials signaled further rate hikes needed; funds rate at 5-5.25% after a pause, with projections of up to two more quarter-point hikes in 2023
• Daly described narrowing risk asymmetry: risks of doing too little still outweigh too much, but gap is closing

Connections: Silicon Valley Bank · Federal Reserve · Banking Regulation · Interest Rate Policy

Source: https://www.cnn.com/2023/07/10/economy/fed-presidents-rate-hikes/