Fed Was in Talks With Silicon Valley Bank to Use Discount Window Before Collapse
Federal Reserve officials were reportedly in discussions with Silicon Valley Bank (SVB) to use its discount window, right before its collapse earlier this month.
The Fed’s top enforcer testified in front of Congress on March 29, as the elected representatives demanded answers for the California-based lender’s collapse.
House lawmakers questioned the regulators’ competency and accused their enforcers of being asleep at the switch.
The blame for sudden collapse of SVB can be spread around to the bank’s executives, Fed supervisors, and other government regulators, Michael Barr, the Fed’s vice chair for supervision, told the House Financial Services Committee, for the second round of hearings regarding the crisis, after an appearance in front of the Senate Banking Committee the previous day….