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.