Fed’s Michael Barr learned of risks at SVB weeks before it failedBy Reuters
March 28, 2023
The Federal Reserve’s head of banking supervision said Tuesday he was first made aware of the interest rate risk-related issues at Silicon Valley Bank in mid-February, just weeks before its failure.
Fed Vice Chairman for Supervision Michael Barr told the Senate Banking Committee that Fed staff made a presentation to the central bank’s board in mid-February in which staff indicated they were following up with SVB on risk related to rising interest rates.
“The staff highlighted the interest-rate risk that was present at Silicon Valley Bank and indicated that they were in the middle of a further review,” Barr said.
“I believe that is the first time that I was told about interest-rate risk at Silicon Valley Bank.”
Supervisory staff at the Fed had previously raised serious concerns over SVB’s interest-rate risk and liquidity management and demanded fixes from the bank in November 2021, Barr said.
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Source:
https://nypost.com/2023/03/28/feds-michael-barr-barr-knew-of-svb-risks-before-it-failed/
