Fallout continues from the run on and collapse of Silicon Valley Bank. The Federal Reserve is launching an internal review of its supervision and regulation of the bank.
Fed Chair Jerome Powell said the bank’s failure demands a “thorough, transparent, and swift review.” Fed Vice Chairman for Supervision Michael Barr is leading the review. The results will be publicly released by May 1.
The wave of concern sparked by the bank’s failures is causing regulators to implement relief measures. The federal government is making sure the bank’s depositors have access to all their funds. Deposits at the recently closed Signature Bank will also be covered.
Meanwhile lawmakers are questioning how Silicon Valley Bank was able to rapidly grow in size and end up with over 90% uninsured deposits, which made it susceptible to a run.
Financial Issues host, Shana Burt, says part of the blame can be laid on pandemic relief funds.