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Fed’s Powell: Silicon Valley Bank management 'failed badly'
Payne: Yellen lying about systemic risk from SVB
FOX Business’ Charles Payne joined “The Big Money Show” to discuss the anticipated Federal Reserve meeting and Treasury Secretary Janet Yellen’s comments on potential continued intervention into the bank crisis.
Federal Reserve Chairman Jerome Powell criticized the management of Silicon Valley Bank (SVB) for failing to manage the bank’s exposure to interest-rate risk and uninsured deposits.
"So, at a basic level, Silicon Valley Bank management failed badly. They grew the bank very quickly. They exposed the bank to significant liquidity risk and interest-rate risk, didn’t hedge that risk," Powell said during a press conference that followed the Fed’s announcement of a 25-basis-point interest-rate hike.
"We now know that supervisors saw these risks and intervened. We know that the public saw all this. We know that SVB experienced an unprecedentedly rapid and massive bank run," Powell continued. "So, this is a very large group of connected depositors, concentrated group of connected depositors in a very, very fast run, faster than the historical record would suggest."
SILICON VALLEY BANK RECKLESS WITH RISK, ESG PUSH: STATE FINANCIAL OFFICERS