Metro Lex News

"The Federal Reserve had all of the tools it needed to prevent the collapse of Silicon Valley Bank in February 2023", said Congressman Andy Barr Chairman of Financial Institutions and Monetary Policy Subcommittee. "Instead of recognizing their own supervisory failures, Vice Chairman Michael Barr and the Federal Reserve are attempting to shift the blame to avoid taking responsibility.  In its self-reflecting, revisionist and sanctimonious report, the Fed is calling for more stringent capital and liquidity requirements that will not fundamentally address the failure of financial institutions to manage their interest rate risk. Nor will it correct the monetary policy failures that necessitated an abrupt rise in interest rates that contributed to bank instability in the first place. Finally, the Fed’s proposed rollback of regulatory tailoring will sideline capital and impair the ability of financial institutions to serve their customers precisely at a time when consumers and businesses need access to credit and banking services. This could destabilize the financial system as a wave of refinancing will be needed in the near future in a higher interest rate environment.”

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