Federal Reserve under scrutiny for role in SVB collapse and other bank failures.
The Federal Reserve is facing criticism for missing red flags that could have prevented the collapse of Silicon Valley Bank, the second-largest bank failure in US history. Critics point to the bank's rapid growth, high level of uninsured deposits, and investments in long-term government bonds and mortgage-backed securities. The bank's failure, along with that of Signature Bank, is complicating the Fed's upcoming decisions on raising its benchmark interest rate to fight inflation. The Fed may focus more on boosting confidence in the financial system than on its long-term drive to tame inflation. The Fed will review its supervision of Silicon Valley Bank, and the bank failures will likely color an upcoming Fed review of rules that set out how much money large banks must hold in reserve.
- Federal Reserve criticized for missing red flags before SVB collapse The Associated Press - en Español
- U.S. Is Said to Open Investigation Into Silicon Valley Bank Collapse The New York Times
- DOJ and SEC launch investigations into the collapse of SVB CNBC Television
- Warren, Watchdogs Demand Independent Probes of Fed Role in Bank Failures Common Dreams
- After bank failures, critics go after Federal Reserve FOX31 Denver
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