MNI BRIEF: Fed's Barr Sees Stronger Rules For Banks Over $100B
Fed vice chair for regulation anticipates "need to strengthen capital and liquidity standards" for firms over USD100B
Federal Reserve Vice Chair for Supervision Michael Barr Tuesday said he anticipates the need to strengthen rules for banks over USD100 billion.
"I anticipate the need to strengthen capital and liquidity standards for firms over a hundred billion dollars," he told lawmakers at a Senate hearing. "We of course would need to go through a notice and comment rule-making in this process."
Barr's comments come as top officials at the FDIC and the Treasury Department also expressed support for strengthening rules and supervision of banks over USD100 billion. Vice Chair Barr on Tuesday largely blamed SVB's management for the bank's collapse, while acknowledging the lightening speed of the bank run. He stated SVB had expected USD100 billion in deposit outflow on March 10. (See MNI INTERVIEW: Ex-FDIC Chair Downplays Bank Contagion Risk)