The U.S. banking system remains the deepest and most resilient in the world, ABA and 51 state bankers associations said in a letter to congressional leaders.
Browsing: bank closures
Legislation that gave the bank regulators broad discretion over how they supervised certain banks had nothing to do with the failure of Silicon Valley Bank, FDIC Vice Chairman Travis Hill said.
CFPB Director Rohit Chopra said that existing law allows regulators “to really kick the tires” on executive compensation at failed banks like Silicon Valley Bank.
The important thing for Americans to know following the failures of Silicon Valley Bank and Signature Bank is that the overall banking sector is resilient, well-capitalized and has solid liquidity, ABA President and CEO Rob Nichols said during a wide-ranging interview for C-SPAN’s news program Washington Journal.
Senate Banking Committee Democrats today asked Treasury Secretary Janet Yellen for an assessment of possible regulatory and legislative changes needed to strengthen the financial system following the failures of Silicon Valley Bank and Signature Bank.
President Biden today called on banking regulators to reinstate rules on regional banks that were “rolled back” during the Trump administration, including rules concerning liquidity stress testing.
During a Senate Banking Committee hearing this week, regulators agreed that rules governing financial institutions should be strengthened to better protect the overall financial system. Several lawmakers questioned, however, whether those same regulators failed to use their existing tools to rein in Silicon Valley Bank.
The Federal Reserve will propose a long-term debt rule for large banks that are not globally systemic important banks, which will require the institutions to maintain a cushion of loss-absorbing resources to support stabilization and allow for resolution in a manner that does not pose a systemic risk to the overall financial system, Federal Reserve Vice Chairman for Supervision Michael Barr said this week.
The FDIC estimates that the cost of resolving Silicon Valley Bank will likely be $20 billion, which will be recovered by a special assessment on banks, FDIC Chairman Martin Gruenberg said this week.
The FDIC announced late Sunday that First Citizens Bank & Trust of Raleigh, North Carolina, has agreed to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, which was established after the closure of the California-based SVB.