“Events surrounding Silicon Valley Bank require thorough, transparent and timely analysis by the Federal Reserve,” Fed Chairman Jerome Powell was quoted in the statement as saying.
The results will be published on May 1.
“We must be humble and carry out a careful and thorough examination of how we have supervised and regulated this company, and what we should learn from this experience,” said the vice president of the institution. in charge of banking regulation, Michael Barr.
The Federal Reserve is responsible for monitoring, inspecting and examining certain financial institutions “to ensure that they comply with rules and regulations and operate in a safe and sound manner,” according to its website.
Michael Barr, appointed by Joe Biden to the key post of vice president responsible for overseeing this sector, joined the Fed last July.
He was one of the main architects of the Dodd-Frank law, passed after the financial crisis of 2008-2009 to better regulate the activity of major American banking institutions.
Bankruptcy of SVB: “Your deposits will be available when you need them”, assures Biden
Former President Donald Trump relaxed these regulations in 2018.
A wave of bank withdrawals caused the failure of three American banks last week, including SVB, which could no longer cope with massive withdrawals from its customers, and was closed on Friday by American authorities.
The latter announced on Sunday a series of measures to reassure individuals and businesses about the solidity of the American banking system and will in particular guarantee the withdrawal of all deposits from SVB.
