US Federal Reserve admits surprise at Silicon Valley Bank collapse
The president of the Fed assured that in the sector there is a "surprise" at the economic situation unleashed in recent weeks
The US Federal Reserve admitted its surprise at the sudden collapse of Silicon Valley Bank, which was under its watch.
Fed Chairman Jerome Powell told a news conference after the Federal Open Market Committee meeting that he immediately ordered an internal investigation upon learning of the bank’s closure on March 10.
The internal investigation is being led by Vice President Michael Barr and focuses on the Fed’s supervision and regulation of the bank.
Powell confirmed that Barr will testify next week, and his goal is to identify what went wrong in the supervision of the bank. The collapse of the SVB has been linked to successive rate hikes by the Fed to control inflation, which eroded long-term SVB bonds bought at rates close to zero.
The announcement of the loss of 1,800 million dollars after taxes and the need to raise 2,250 million caused a collapse of 160,000 million in the market capitalization of the SVB in 24 hours.
Source: La Tercera
(Reference image source: file)
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