White House proposes tougher bank rules, new tests after crisis
1 year, 8 months ago

White House proposes tougher bank rules, new tests after crisis

LA Times  

The Biden administration is proposing to tighten rules on midsize institutions as it searches for tools to further calm the banking crisis and prevent another failure, such as those of Silicon Valley Bank and Signature Bank. The changes include reinstating rules for banks with assets between $100 billion and $250 billion — a category that Silicon Valley Bank, one of the institutions that failed, fell into — including liquidity requirements, enhanced stress testing and “living wills” that show how banks that size could be wound down. The White House backed calls for community banks to not share the cost of replenishing the Deposit Insurance Fund, which was used to backstop SVB and Signature Bank, which also failed. House Financial Services Committee Chairman Patrick McHenry of North Carolina said in a statement that the “Biden administration continues to politicize the failure of SVB and Signature Bank to push long-held progressive priorities unrelated to the causes of the collapses.” The Bank Policy Institute, a trade group for the largest banks, urged caution on adopting new regulations. “We look forward to prompt action by the agencies following up on today’s important words and directives from the White House,” said Dennis M. Kelleher, the group’s chief executive.

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History of this topic

Trump advisers seek to shrink or eliminate bank regulators
1 week, 5 days ago

Trump advisers seek to shrink or eliminate bank regulators

Live Mint  

The Trump transition team has started to explore pathways to dramatically shrink, consolidate or even eliminate the top bank watchdogs in Washington. In recent interviews with potential nominees to lead bank regulatory agencies, Trump advisers and officials from his newfound Department of Government Efficiency have, for example, asked whether the president-elect could abolish the Federal Deposit Insurance Corp., people familiar …

Big bank CEOs warn that new regulations may severely impact economy
1 year ago

Big bank CEOs warn that new regulations may severely impact economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. The CEOs of JPMorgan Chase, …

CEOs of the nation’s biggest banks warn that new regulations could harm the economy
1 year ago

CEOs of the nation’s biggest banks warn that new regulations could harm the economy

Associated Press  

NEW YORK — The heads of Wall Street’s biggest banks used an appearance on Capitol Hill on Wednesday to plead with senators to stop the Biden administration’s proposed changes to how banks are regulated, warning that the new proposals could negatively impact the economy at a time of geopolitical turmoil and inflation. Whereas in previous years the bank CEOs used …

California bank regulator finds own faults in bank’s demise
1 year, 7 months ago

California bank regulator finds own faults in bank’s demise

Associated Press  

NEW YORK — California’s bank regulator said Monday that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems. A report from the California Department of Financial Protection and Innovation echoed similar findings in a Federal Reserve report looking at its own supervision …

'First Republic Bank was severely mismanaged, would be held accountable': White House
1 year, 7 months ago

'First Republic Bank was severely mismanaged, would be held accountable': White House

Hindustan Times  

Decisive actions taken by U.S. regulators to seize First Republic Bank and facilitate its takeover by JPMorgan Chase & Co will protect depositors and ensure the banking system stays stable, White House press secretary Karine Jean-Pierre said on Monday. People walk past a First Republic bank in Manhattan on May 01, 2023 in New York City. Jean-Pierre told reporters that …

Fed Says It Failed to Act on Problems That Led to Silicon Valley Bank Collapse
1 year, 7 months ago

Fed Says It Failed to Act on Problems That Led to Silicon Valley Bank Collapse

Live Mint  

The Federal Reserve’s banking supervisors failed to take forceful action to address growing problems at Silicon Valley Bank before it collapsed last month, the central bank’s top regulator said, signaling a broad push to toughen rules on the industry. Yet another report on Friday from the Government Accountability Office, a congressional watchdog, said regulators identified problems at both banks in …

Silicon Valley Bank: US Fed calls for tougher bank rules after SVB collapse
1 year, 7 months ago

Silicon Valley Bank: US Fed calls for tougher bank rules after SVB collapse

Live Mint  

The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank last month. "Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned," Federal Reserve vice chair for supervision Michael Barr wrote in …

Fed Admits to Failures in Oversight of Silicon Valley Bank Collapse in New Report
1 year, 7 months ago

Fed Admits to Failures in Oversight of Silicon Valley Bank Collapse in New Report

News 18  

The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank last month. “Following Silicon Valley Bank’s failure, we must strengthen the Federal Reserve’s supervision and regulation based on what we have learned,” Federal Reserve vice chair for supervision Michael Barr wrote in …

Congress Helped Set Stage For Silicon Valley Bank’s Failure, Federal Reserve Says
1 year, 7 months ago

Congress Helped Set Stage For Silicon Valley Bank’s Failure, Federal Reserve Says

Huff Post  

LOADING ERROR LOADING WASHINGTON ― After the failure of Silicon Valley Bank in March, Senate Banking Committee member Sen. John Kennedy asked on the Senate floor, “Where were the regulators?” On Friday, the regulators responded ― with a reminder that Kennedy and other lawmakers told them to go easy on institutions like Silicon Valley Bank. In a lengthy and highly …

Fed blames itself for Silicon Valley Bank collapse
1 year, 7 months ago

Fed blames itself for Silicon Valley Bank collapse

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Silicon Valley Bank failed …

US Federal Reserve admits faults and calls for stronger banking oversight after Silicon Valley Bank collapse
1 year, 7 months ago

US Federal Reserve admits faults and calls for stronger banking oversight after Silicon Valley Bank collapse

Hindustan Times  

The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank last month. US Federal Reserve admits to failings in Silicon Valley Bank oversight "Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have …

Regulators to Publish Postmortems on Silicon Valley Bank, Signature Failures
1 year, 7 months ago

Regulators to Publish Postmortems on Silicon Valley Bank, Signature Failures

Live Mint  

Washington regulators plan to release postmortems of their oversight of Silicon Valley Bank and Signature Bank before they abruptly collapsed last month, potentially highlighting missteps by both banks’ management and their federal supervisors. FDIC Chairman Martin Gruenberg recently said that banks with large amounts of uninsured deposits face challenges, “particularly in today’s environment where money can flow out of institutions …

Dimon: Bank rules should change after Silicon Valley Bank
1 year, 8 months ago

Dimon: Bank rules should change after Silicon Valley Bank

Associated Press  

NEW YORK — JPMorgan CEO Jamie Dimon said the U.S. and the banking industry should amend regulations following the collapse of Silicon Valley Bank and Signature Bank last month, saying that the financial system needs to be adjusted so that one bank’s failure does not “cause undue panic and financial harm.” The comments, made in Dimon’s letter to JPMorgan Chase …

White House skirts Congress to push new regional bank rules
1 year, 8 months ago

White House skirts Congress to push new regional bank rules

Daily Mail  

The Biden administration proposed a list of new bank measures Thursday that it says can be done without the help of Congress and will reverse some of the regulatory rollbacks made during the Trump-era. The White House said it would like to see midsized banks hold more liquid assets, increase their capital, submit to regular stress tests and write 'living …

Biden urges US regulators to restore strict rules on midsize banks
1 year, 8 months ago

Biden urges US regulators to restore strict rules on midsize banks

Hindustan Times  

President Joe Biden called on US banking regulators on Thursday to reinstate tougher rules on midsized banks, asserting that the measures would prevent future failures like that of Silicon Valley Bank. Pointing a finger at predecessor Donald Trump, who eased rules for banks between $100 and $250 billion in assets, Biden urged regulators at the Federal Reserve and Federal Deposit …

GOP lawmakers accuse Fed of being lax before bank failure
1 year, 8 months ago

GOP lawmakers accuse Fed of being lax before bank failure

Associated Press  

WASHINGTON — Republican lawmakers accused top bank regulators Wednesday of dawdling as Silicon Valley Bank hurtled toward the second-largest bank failure in U.S. history and questioned whether tougher regulations would have made a difference. “That doesn’t sound like a very urgent supervisory process,” Rep. French Hill, an Arkansas Republican, said at Wednesday’s hearing of the House Financial Services Committee into …

Fed official: Bank rules under review in wake of SVB failure
1 year, 8 months ago

Fed official: Bank rules under review in wake of SVB failure

Associated Press  

WASHINGTON — The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems. The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate …

Bank failures and rescue test Yellen’s decades of experience
1 year, 8 months ago

Bank failures and rescue test Yellen’s decades of experience

Associated Press  

WASHINGTON — Working against the clock to stop a developing banking crisis, Treasury Secretary Janet Yellen had until sunset on Sunday, March 12, to come up with a plan to calm the U.S. economy. Yellen spent that crucial period two weeks ago assembling Federal Reserve officials; regulators at the Federal Deposit Insurance Corp. and the Office of the Comptroller of …

Biden says U.S. banks are in good shape, turmoil will ease
1 year, 9 months ago

Biden says U.S. banks are in good shape, turmoil will ease

LA Times  

Regulators are still working to stabilize the banking sector after the collapse of Silicon Valley Bank and Signature Bank. President Biden said he was confident U.S. regional banks were in good shape and didn’t foresee any major crises on the horizon, downplaying Wall Street angst and lingering fears of broader financial turmoil. Business Everything to know about Silicon Valley Bank’s …

Yellen says US prepared to take more action to keep bank deposits safe
1 year, 9 months ago

Yellen says US prepared to take more action to keep bank deposits safe

Live Mint  

US Treasury Secretary Janet Yellen reiterated on Thursday that she was prepared to take further action to ensure that Americans' bank deposits stay safe amid turmoil in the banking system. "As I have said, we have used important tools to act quickly to prevent contagion," Yellen said in remarks to the U.S. House of Representatives Appropriations subcommittee hearing. Separately on …

Bank failures: Anger in Congress, but division on what to do
1 year, 9 months ago

Bank failures: Anger in Congress, but division on what to do

Associated Press  

WASHINGTON — Bills were filed, hearings were planned and blame was cast as Congress reacted this past week to the abrupt failure of two banks. “There’s people who are going to choose bills, but I cannot imagine that, with the hold banks have on Republican members of Congress, that we can pass anything significant,” said Sen. Sherrod Brown, D-Ohio, chairman …

Washington turns to Wall Street to help rescue dying bank
1 year, 9 months ago

Washington turns to Wall Street to help rescue dying bank

Associated Press  

The scene was reminiscent of the last financial crisis, nearly 15 years ago: Faced with a blossoming emergency in the banking sector, worried regulators and policymakers in Washington turned to Wall Street for help. Treasury Secretary Janet Yellen discussed the idea of supporting First Republic with other bank regulators — the Federal Reserve, the Federal Deposit Insurance Corp. and the …

Biden calls for tougher penalties for execs of failed banks
1 year, 9 months ago

Biden calls for tougher penalties for execs of failed banks

Associated Press  

WASHINGTON — President Joe Biden on Friday called on Congress to allow regulators to impose tougher penalties on the executives of failed banks, including clawing back compensation and making it easier to bar them from working in the industry. “Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.” https://apnews.com/article/business-united-states-government-signature-bank-financial-services-first-republic-76e85af430ca42808eb4d7925fe06c4d Currently the …

Yellen declares bank system sound, as new rescues ordered
1 year, 9 months ago

Yellen declares bank system sound, as new rescues ordered

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen offered firm, upbeat reassurances to rattled bank depositors and investors Thursday, even as American financial institutions and European agencies ordered fresh rescue efforts following the second-largest bank collapse in U.S. history. The Treasury secretary was the first administration official to face lawmakers over the decision to protect uninsured money at the two failed regional …

Experts, banks look for ideas to stop next bank failure
1 year, 9 months ago

Experts, banks look for ideas to stop next bank failure

Associated Press  

WASHINGTON — The warning signs were all there. “The great mystery here is why the supervision was AWOL at Silicon Valley Bank.’’ The search for causes and culprits — and solutions — is refocusing attention on a 2018 federal law that rolled back tough bank regulations put in place after the 2008-2009 financial crisis and, perhaps even more, on the …

Republicans Accept No Blame For Bank Failures After They Voted To Deregulate Banks
1 year, 9 months ago

Republicans Accept No Blame For Bank Failures After They Voted To Deregulate Banks

Huff Post  

LOADING ERROR LOADING WASHINGTON — Senate Republicans insist that the bank deregulation bill Donald Trump signed into law five years ago had nothing to do with the bank failures that caught regulators off guard this month. “And if they chose not to do it, that’s gonna be a really good question based on the activities of Silicon Valley.” Sen. Kevin …

Silicon Valley Bank Collapse: How Washington ended up rescuing US banks
1 year, 9 months ago

Silicon Valley Bank Collapse: How Washington ended up rescuing US banks

Firstpost  

Washington: After the sudden collapse of Silicon Valley Bank, California Democratic Representative Maxine Waters started furiously working the phones to find out what was going on with the failed lender — and what would happen to its panicked depositors. Federal Deposit Insurance Corp officials told Republican senators Monday that they received offers for the bank over the weekend but didn’t …

How Washington came to rescue US banks
1 year, 9 months ago

How Washington came to rescue US banks

Associated Press  

WASHINGTON — After the sudden collapse of Silicon Valley Bank, California Democratic Rep. Maxine Waters started furiously working the phones to find out what was going on with the failed lender — and what would happen to its panicked depositors. Federal Deposit Insurance Corp. officials told Republican senators Monday that they received offers for the bank over the weekend but …

Silicon Valley Bank collapse: 96 hours after biggest US bank failure in 15 years
1 year, 9 months ago

Silicon Valley Bank collapse: 96 hours after biggest US bank failure in 15 years

Hindustan Times  

The U.S. government launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank, the largest bank collapse since the 2008 financial crisis. THURSDAY, MARCH 9 As U.S. Treasury Secretary Janet Yellen prepares for a Friday hearing before the Republican-controlled House Ways and Means Committee, investors are raising concerns about a …

Silicon Valley Bank crisis: Fed faces flak for ‘missing’ warning signs| 5 points
1 year, 9 months ago

Silicon Valley Bank crisis: Fed faces flak for ‘missing’ warning signs| 5 points

Hindustan Times  

The Silicon Valley Bank collapse continues to dominate headlines in the financial world. The bank's new chief executive officer Tim Mayopoulos has urged the lender's top venture capitalists to move their deposits to its newly created bridge entity, Reuters reported. This comes a day after the Moody's Investors Service downgraded First Republic Bank and five other lenders, citing concerns over …

Why Silicon Valley Bank’s collapse put the spotlight on Trump
1 year, 9 months ago

Why Silicon Valley Bank’s collapse put the spotlight on Trump

Al Jazeera  

The 2018 partial rollback of US legislation Dodd-Frank is under renewed scrutiny following the failure of California-based lender. On Tuesday, Senator Elizabeth Warren, who is among a number of Democrats who have directly blamed Trump for the bank failures, announced plans to unveil legislation to restore key provisions of Dodd-Frank, including the $50bn threshold for “too big to fail” banks. …

Timeline: How US gov’t scrambled as Silicon Valley Bank collapsed
1 year, 9 months ago

Timeline: How US gov’t scrambled as Silicon Valley Bank collapsed

Al Jazeera  

Biden administration quickly put emergency measures in place as SVB failed. The United States government launched emergency measures at the weekend to shore up confidence in the banking system after the failure of Silicon Valley Bank, the largest bank collapse since the 2008 financial crisis. Here’s a look at how things unfolded: March 9 As US Treasury Secretary Janet Yellen …

“Threatening our entire economy”: Warren introduces bill to repeal “Trump’s bank law”
1 year, 9 months ago

“Threatening our entire economy”: Warren introduces bill to repeal “Trump’s bank law”

Salon  

This article originally appeared at Common Dreams. Sen. Elizabeth Warren and Rep. Katie Porter unveiled legislation Tuesday to repeal the section of a Trump-era law that weakened regulations for banks with between $50 billion to $250 billion in assets, a move that experts and lawmakers have blamed for the collapse of Silicon Valley Bank and the resulting turmoil. "In 2018, …

Fed criticized for missing red flags before bank collapse
1 year, 9 months ago

Fed criticized for missing red flags before bank collapse

Associated Press  

WASHINGTON — The Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into the second-largest bank failure in U.S. history. Now the consequences of the fall of Silicon Valley Bank, along with New York-based Signature Bank, which failed over the weekend, are complicating the Fed’s …

Silicon Valley Bank crisis: Did bank regulators, investors ignore warning signs?
1 year, 9 months ago

Silicon Valley Bank crisis: Did bank regulators, investors ignore warning signs?

Hindustan Times  

With hindsight, there were warning signs ahead of last week's spectacular collapse of Silicon Valley Bank, missed not only by investors, but by bank regulators. Banking experts have been among those alarmed at the rapid collapse of SVB, the country's 16th biggest bank by assets and how its demise became a harbinger of Sunday's failure of another lender, Signature Bank. …

On Silicon valley bank crisis, Joe Biden's message to US taxpayers is...
1 year, 9 months ago

On Silicon valley bank crisis, Joe Biden's message to US taxpayers is...

Hindustan Times  

President Joe Biden on Monday reassured Americans that their banking system is secure in the wake of the collapse of SVB and said he wants tougher regulations to prevent future crises. Your deposits will be there when you need them," Biden said in televised remarks from the White House after Silicon Valley Bank's failure and the federal takeover of a …

How the US Federal Reserve is handling the Silicon Valley Bank crisis
1 year, 9 months ago

How the US Federal Reserve is handling the Silicon Valley Bank crisis

Hindustan Times  

The collapse of Silicon Valley Bank was swift and brutal, and left much of the world wondering what would come next. Fearing contagion would upend the industry, the US Federal Reserve, Treasury Department and Federal Deposit Insurance Corp. moved quickly over the weekend to protect customer deposits and shore up confidence in the banking system. Here’s everything we know right …

Biden says Americans can "rest assured" banking system is secure after SVB collapse
1 year, 9 months ago

Biden says Americans can "rest assured" banking system is secure after SVB collapse

CBS News  

Biden says banking system safe after two banks fail in a matter of days Washington — President Biden on Monday sought to reassure Americans that they can have confidence in the U.S. banking system following the collapse of Silicon Valley Bank and quell any concerns about the fallout from its abrupt failure. The president also called for a "full accounting" …

The White House is avoiding one word when it comes to Silicon Valley Bank: bailout
1 year, 9 months ago

The White House is avoiding one word when it comes to Silicon Valley Bank: bailout

NPR  

The White House is avoiding one word when it comes to Silicon Valley Bank: bailout Enlarge this image toggle caption Justin Sullivan/Getty Images Justin Sullivan/Getty Images After Silicon Valley Bank careened off a cliff last week, jittery venture capitalists and tech startup leaders pleaded with the Biden administration for help, but they made one point clear: "We are not asking …

Can the chaos from Silicon Valley Bank’s fall be contained?
1 year, 9 months ago

Can the chaos from Silicon Valley Bank’s fall be contained?

Associated Press  

NEW YORK — Can Washington come to the rescue of the depositors of failed Silicon Valley Bank? Prominent Silicon Valley personalities and executives have been hitting the giant red “PANIC” button, saying that if Washington does not come to the rescue of Silicon Valley bank’s depositors, more bank runs are likely. Further, it appears that Silicon Valley Bank’s failure appears …

‘We won’t do that again': US rules out federal bailout for Silicon Valley Bank
1 year, 9 months ago

‘We won’t do that again': US rules out federal bailout for Silicon Valley Bank

Hindustan Times  

Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money. Silicon Valley Bank began its slid into insolvency when its customers, largely technology companies that needed cash as they struggled to get financing, began withdrawing their deposits. Yellen described rising interest …

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