{"id":617797,"date":"2023-03-14T10:03:17","date_gmt":"2023-03-14T15:03:17","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/14\/us-fed-announces-internal-investigation-after-silicon-valley-bank-collapse\/"},"modified":"2023-03-14T10:03:17","modified_gmt":"2023-03-14T15:03:17","slug":"us-fed-announces-internal-investigation-after-silicon-valley-bank-collapse","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/14\/us-fed-announces-internal-investigation-after-silicon-valley-bank-collapse\/","title":{"rendered":"US Fed Announces Internal Investigation after Silicon Valley Bank Collapse"},"content":{"rendered":"
\n

The US Federal
\nReserve (Fed<\/a>) announced on Monday the initiation of an internal probe into the Silicon Valley Bank (SVB) failure, which Michael S. Barr, the Vice Chair for Supervision at the central bank, will lead.<\/p>\n

Fed Initiates Internal
\nProbe Over SVB Collapse<\/h2>\n

According<\/a>
\nto the official publication from 13 March 2023, Bar and his team will review how
\nSVB was regulated and supervised by Fed before its collapse in search of potential
\nnegligence that could explain the reasons for the sudden bankruptcy<\/span><\/span> <\/span> of the
\ninstitution. The final results will be released to the public by 1 May 2023.<\/p>\n

“The
\nevents surrounding Silicon Valley Bank demand a thorough, transparent, and
\nswift review by the Federal Reserve. We need to have humility, and conduct a
\ncareful and thorough review of how we supervised and regulated this firm, and
\nwhat we should learn from this experience,” Jerome H. Powell, the Chairman
\nof the Federal Reserve Board, commented.<\/p>\n

\n

@federalreserve<\/a> announces that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1: https:\/\/t.co\/wQ39KLiwHE<\/a><\/p>\n

\u2014 Federal Reserve (@federalreserve) March 13, 2023<\/a><\/p><\/blockquote>\n

On 10 March,
\nthe California Department of Financial Protection and Innovation took the
\ndecision to close down SVB without providing any clear explanation for the
\nabrupt action. According to reports, SVB had been struggling with severe
\nliquidity issues and was teetering on the brink of collapse. This was
\nattributed to significant losses incurred on government bond investments as
\nwell as deposit withdrawals by worried customers, which compounded the bank’s
\nfinancial woes.<\/p>\n

The
\nCalifornian authority’s decision triggered a market panic and led to a dynamic
\nfall of bank shares around the world.<\/p>\n

Credit Suisse Tests Record-Lows,
\nFirst Republic Bank Slumps over 60%<\/h2>\n

The
\ncollapse of SVB triggered a strong response from the cryptocurrency community due
\nto the capital links of large companies in the industry with the bank. Circle,
\na stablecoin<\/span><\/span> <\/span> USDC issuer, allocated 8% of its USDC reserves<\/a>, equivalent to
\n$3.3 billion, to Silicon Valley Bank. This caused initial panic and a
\ndepreciation of the stablecoin against the US dollar. However, most of the
\npanic subsided over the weekend and Bitcoin (BTC) rebounded quickly from
\nmulti-month lows to near-month highs.<\/p>\n

Nonetheless,
\nuncertainty continues to grip traditional stock exchanges, particularly in the
\nbanking sector. According to a report by Finance Magnates<\/em>, Credit
\nSuisse, the troubled banking giant, saw its shares drop to historic lows in
\nresponse to news of SVB’s collapse.<\/p>\n

Shares in
\nCredit Suisse (SIX: CSGN) started this week at EUR 2.5 but were down around 9.5%,
\nto EUR 2.15 after the closing bell on Monday, touching an all-time low<\/a>. The
\nlender has lost approximately 20% since the beginning of the year after
\nits shares plummeted almost 70% in 2022.<\/p>\n

\n

\"Credit<\/p>

\n

Credit Suisse Shares Test New All-Time Low. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n

However, the
\nstocks of the regional lender, First Republic Bank tanked the most, plunging over
\n60% on Monday<\/a>, accounting for the largest share loss. Several other lenders saw
\nsignificant drops in their stock prices as well. For instance, Zions
\nBancorporation’s shares fell by 25% to $30, while Charles Schwab’s dropped by
\n11% to $52, and Bank of America’s decreased by 3% to $29, among others. The volatile
\ntrading activity led to many of these stocks being halted multiple times
\nthroughout the day.<\/p>\n

\n

\"First<\/p>

\n

First Republic Bank Shares Closed at Lowest Levels Since 2012. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n

On Sunday, Treasury
\nSecretary Janet Yellen, Federal Reserve Chair Jerome Powell, and FIDC Chairman
\nMartin Gruenberg said in a joint statement that the depositors’ claims would be
\nfully protected. The Fed convened a special meeting to address the market panic
\nand issued a notice to launch an internal investigation.<\/p>\n<\/div>\n

\n

The US Federal
\nReserve (Fed<\/a>) announced on Monday the initiation of an internal probe into the Silicon Valley Bank (SVB) failure, which Michael S. Barr, the Vice Chair for Supervision at the central bank, will lead.<\/p>\n

Fed Initiates Internal
\nProbe Over SVB Collapse<\/h2>\n

According<\/a>
\nto the official publication from 13 March 2023, Bar and his team will review how
\nSVB was regulated and supervised by Fed before its collapse in search of potential
\nnegligence that could explain the reasons for the sudden bankruptcy<\/span><\/span> <\/span> of the
\ninstitution. The final results will be released to the public by 1 May 2023.<\/p>\n

“The
\nevents surrounding Silicon Valley Bank demand a thorough, transparent, and
\nswift review by the Federal Reserve. We need to have humility, and conduct a
\ncareful and thorough review of how we supervised and regulated this firm, and
\nwhat we should learn from this experience,” Jerome H. Powell, the Chairman
\nof the Federal Reserve Board, commented.<\/p>\n

\n

@federalreserve<\/a> announces that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1: https:\/\/t.co\/wQ39KLiwHE<\/a><\/p>\n

\u2014 Federal Reserve (@federalreserve) March 13, 2023<\/a><\/p><\/blockquote>\n

On 10 March,
\nthe California Department of Financial Protection and Innovation took the
\ndecision to close down SVB without providing any clear explanation for the
\nabrupt action. According to reports, SVB had been struggling with severe
\nliquidity issues and was teetering on the brink of collapse. This was
\nattributed to significant losses incurred on government bond investments as
\nwell as deposit withdrawals by worried customers, which compounded the bank’s
\nfinancial woes.<\/p>\n

The
\nCalifornian authority’s decision triggered a market panic and led to a dynamic
\nfall of bank shares around the world.<\/p>\n

Credit Suisse Tests Record-Lows,
\nFirst Republic Bank Slumps over 60%<\/h2>\n

The
\ncollapse of SVB triggered a strong response from the cryptocurrency community due
\nto the capital links of large companies in the industry with the bank. Circle,
\na stablecoin<\/span><\/span> <\/span> USDC issuer, allocated 8% of its USDC reserves<\/a>, equivalent to
\n$3.3 billion, to Silicon Valley Bank. This caused initial panic and a
\ndepreciation of the stablecoin against the US dollar. However, most of the
\npanic subsided over the weekend and Bitcoin (BTC) rebounded quickly from
\nmulti-month lows to near-month highs.<\/p>\n

Nonetheless,
\nuncertainty continues to grip traditional stock exchanges, particularly in the
\nbanking sector. According to a report by Finance Magnates<\/em>, Credit
\nSuisse, the troubled banking giant, saw its shares drop to historic lows in
\nresponse to news of SVB’s collapse.<\/p>\n

Shares in
\nCredit Suisse (SIX: CSGN) started this week at EUR 2.5 but were down around 9.5%,
\nto EUR 2.15 after the closing bell on Monday, touching an all-time low<\/a>. The
\nlender has lost approximately 20% since the beginning of the year after
\nits shares plummeted almost 70% in 2022.<\/p>\n

\n

\"Credit<\/p>

\n

Credit Suisse Shares Test New All-Time Low. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n

However, the
\nstocks of the regional lender, First Republic Bank tanked the most, plunging over
\n60% on Monday<\/a>, accounting for the largest share loss. Several other lenders saw
\nsignificant drops in their stock prices as well. For instance, Zions
\nBancorporation’s shares fell by 25% to $30, while Charles Schwab’s dropped by
\n11% to $52, and Bank of America’s decreased by 3% to $29, among others. The volatile
\ntrading activity led to many of these stocks being halted multiple times
\nthroughout the day.<\/p>\n

\n

\"First<\/p>

\n

First Republic Bank Shares Closed at Lowest Levels Since 2012. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n

On Sunday, Treasury
\nSecretary Janet Yellen, Federal Reserve Chair Jerome Powell, and FIDC Chairman
\nMartin Gruenberg said in a joint statement that the depositors’ claims would be
\nfully protected. The Fed convened a special meeting to address the market panic
\nand issued a notice to launch an internal investigation.<\/p>\n<\/div>\n

Read More<\/a>
\n Damian Chmiel<\/p>\n","protected":false},"excerpt":{"rendered":"

The US Federal Reserve (Fed) announced on Monday the initiation of an internal probe into the Silicon Valley Bank (SVB) failure, which Michael S. Barr, the Vice Chair for Supervision at the central bank, will lead.Fed Initiates Internal Probe Over SVB CollapseAccording to the official publication from 13 March 2023, Bar and his team will<\/p>\n","protected":false},"author":1,"featured_media":617798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[551,5020],"tags":[],"class_list":{"0":"post-617797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-announces","8":"category-internal"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=617797"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/617798"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=617797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=617797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=617797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}