Federal reserve

WASHINGTON — The Federal Reserve’s vice chair for supervision blamed Silicon Valley Bank’s demise on poor internal management and excessive risk-taking and detailed the steps that Fed supervisors took to address the snowballing problems that ultimately killed the company, according to prepared remarks ahead of a congressional hearing on Tuesday. The vice chair, Michael Barr, who will appear at a Senate Banking Committee hearing along with other regulators, also acknowledged in his written testimony that bank supervision and regulation might need to change in the wake of the collapse. Silicon Valley Bank’s collapse this month sent shock-waves across the global banking system, prompting many depositors to pull their cash out of regional and smaller banks over concerns they could lose their money. The tumult prompted a sweeping response from the government, which pledged to make sure that even big and uninsured depositors at Silicon Valley Bank and another failed bank — Signature — … [Read more...] about Fed Vice Chair Calls Silicon Valley Bank a ‘Textbook Case of Mismanagement’

0 Community Corner The Golden State may not receive another gas tax hike this summer under Gov. Newsom's budget proposal. What to know. Paige Austin and Kat Schuster , Patch Staff Posted Reply LOS ANGELES, CA — Residents in Sherman Oaks facing inflation and an unrelenting pandemic may find a little bit of relief at the gas pump this summer. Under Gov. Gavin Newsom's budget proposal, the state's summer gas tax hike may not take effect. Newsom unveiled his budget plan on Monday and introduced his "$523 million dollar gas tax holiday." “We’re going to backfill it in terms of the tax itself to transportation projects so that there’s no direct impact to investments,” Newsom told reporters. The inflation adjustment on gasoline prices was set to befall Californians in July. Last year, the gas tax in California increased by 51.1 cents on July 1. An analysis by Stillwater Associates last year found that Golden … [Read more...] about Sherman Oaks ‘Gas Tax Holiday’ Proposed Amid Surging Fuel Prices

___ Deal to buy Silicon Valley Bank calms bank fears, for now NEW YORK (AP) — First Citizens will acquire much of Silicon Valley Bank, the tech-focused financial institution whose lightning-quick failure this month set off a chain reaction that rattled faith in banks around the world. The sale underscores that Silicon Valley Bank’s assets do have value and helps to rebuild some faith. Stocks of several beaten down banks rose in a show of strength after the Federal Deposit Insurance Corp. announced the deal. But investors and experts caution the sale doesn’t by itself provide an immediate all-clear for other banks following the second- and third-largest U.S. failures in history. That will likely take more time. ___ Fed official: SVB itself was main cause of bank’s failure WASHINGTON (AP) — The nation’s top financial regulator is asserting that Silicon Valley Bank’s own management was largely to blame for the bank’s failure earlier this month and says the Federal Reserve … [Read more...] about Business Highlights: Silicon Valley Bank; Kia, Hyundai