The Federal Reserve should conduct a complete, transparent, and prompt investigation of the circumstances surrounding Silicon Valley Bank, according to chair Jerome Powell.
Following the failure of Sarah Bloom Raskin's candidacy, President Biden proposed Barr, a former official in the Obama and Clinton administrations, in April 2022.
In a statement, Barr added, "We need to be humble and conduct a careful and thorough evaluation of how we oversaw and regulated this organization, and what we should learn from this experience. Barr's report will be made available to the public by May 1.
While the federal government hurried to reassure Americans that the banking system was secure after two bank failures stoked fears that more financial institutions could fail, depositors withdrew savings and investors broadly sold off bank shares on Monday.
Although the second and third biggest bank collapses in American history occurred within a 48-hour period, President Joe Biden asserted that the system was secure. In response to the crisis, regulators developed a program that effectively threw a lifeline to other banks to prevent a run on deposits and insured all deposits at the two banks.
In an effort to provide assurance, Biden assured the public that "your savings would be there when you need them". He added that the bank executives liable for the failures would face consequences.
Because customers hurried to take their money all at once, regulators forced the closure of Silicon Valley Bank on Friday. The 2008 collapse of Washington Mutual was the only more significant disaster in American banking history. The third-largest failure in American history also included a New York-based institution, Signature Bank.
In both instances, the government consented to pay deposits, even if they exceeded the $250,000 federally insured cap.
