Federal Reserve head Jerome Powell criticized the leadership of Silicon Valley Bank on Wednesday, painting the second-largest bank failure in U.S. history as an isolated instance caused by poor judgment.
Federal Reserve head Jerome Powell excoriated the leadership of Silicon Valley Bank on Wednesday, painting the second-largest bank failure in U.S. history as an isolated instance caused by poor judgment.
"At a basic level, Silicon Valley Bank management failed badly," Powell said in a press conference to discuss the Fed's latest move to hike its benchmark interest rate."They grew the bank very quickly. They exposed the bank to significant liquidity risk and interest rate risk. Didn't hedge that risk.
California regulators seized SVB on March 10, while the federal government was forced to step in to guarantee the money held at the bank and at a smaller lender, New York'sAlthough more than 90% of deposits at both banks were uninsured — meaning beyond the Federal Deposit Insurance Corp.'s $250,000 insurance cap — the government opted to safeguard all the funds out of fear that a major loss of depositor money could trigger other bank runs, Powell said.
"The issue was not about those specific banks but about the risk of contagion to other banks and the financial markets more broadly," he said.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Fed's Powell: Silicon Valley Bank management 'failed badly'Federal Reserve Chairman Jerome Powell said Wednesday the management of Silicon Valley Bank 'failed badly' by exposing the firm to substantial risks from its bond holdings and deposit base.
続きを読む »
Silicon Valley Bank's collapse looms over Fed interest rate decisionSilicon Valley Bank's collapse is looming over the Fed as it makes the next move in its war on inflation this week
続きを読む »
Fed Hiked and So Did Silicon Valley BankThe Federal Reserve, noting that bank turmoil will tighten economic conditions, raised rates by a quarter-point. jdlahart explains. WSJWhatsNow
続きを読む »
Silicon Valley Bank’s Focus on Startups Was a Double-Edged SwordSilicon Valley Bank focused on the startup sector, and that’s part of the story of why it failed. Lack of diversification means more risk. But SVB’s focus has real benefits as well: It allowed the bank to build up a tremendous amount of tacit knowledge about how startups and venture capital worked. The best result would be for a big bank to buy SVB whole, so that that knowledge doesn’t get lost.
続きを読む »
Silicon Valley Bank’s collapse is not a 2008 moment – UBSThe collapse of Silicon Valley Bank has created turmoil in the US banking system, prompting comparisons with the global financial crisis. Economists a
続きを読む »
Evaluating demise of Silicon Valley Bank and role of ‘regulators’Opinion | Evaluating demise of Silicon Valley Bank and role of ‘regulators’ WashTimesOpEd
続きを読む »