Free Trial

MNI BRIEF: Fed's Barr: Will Use All Tools To Keep Banks Safe

Federal Reserve bank supervision chief Michael Barr pledged Monday to use "all of our tools for any size institution, as needed, to keep the system safe and sound," ahead of testimony to the Senate Banking Committee on oversight of failed Silicon Valley Bank.

Bank regulators' and Treasury's swift actions after the collapse of SVB "demonstrate that we are committed to ensuring that all deposits are safe," he said. "We will continue to closely monitor conditions in the banking system and are prepared to use all of our tools for any size institution, as needed, to keep the system safe and sound."

The Fed's one-year emergency lending facility for banks along with its discount window and banks' own resources provide "ample liquidity for the banking system as a whole," he added. SVB's failure was a result of mismanagement and Fed supervisors repeatedly warned executives of deficiencies, Barr said.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.