WASHINGTON ― After the failure of Silicon Valley Bank in March, Senate Banking Committee member Sen. John Kennedy (R-La.) asked on the Senate floor, “Where were the regulators?”On Friday, the regulators responded ― with a reminder that Kennedy and other lawmakers told them to go easy on institutions like Silicon Valley Bank. Silicon Valley Bank failed after its depositors rushed to withdraw money amid concerns about the bank’s stability ― concerns triggered by the bank’s own belated effort to shore up its risky balance sheet. AdvertisementBut the document emphasized weakened regulations and a hands-off culture among regulators as major culprits in Silicon Valley Bank’s flop. In 2018, Congress rolled back rules put in place following the Wall Street crash a decade earlier, easing burdens on mid-sized banks so they would lend more freely.

Source: Huffington Post April 29, 2023 01:00 UTC