Yeah, wouldn’t want to publicly state what the Fed was doing in its communications with SVB. I mean, one might get the idea that the run on the bank started because of leaks from the Fed and bank personnel or from it’s board or officers…
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Powell did instruct Fed Vice Chair for Supervision Michael Barr to conduct a six-week review into the Fed’s oversight of SVB before the collapse.
Yep…6 weeks for the story to head for pg.23…it’s the equivalent of Louies “round up the usual suspects” line from Casablnca…what wondrous form of obfuscation, finger pointing and demagoguery will emerge? We little guys just need to get prepared for further interest rate increases to battle the inflation bogeyman. Macro economics is complicated with lots of moving parts…players in the banking industry are making billions and seem to have it all figured out.
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Having worked at one of the country’s larger banks in the '70’s, I can attest to the fact that Federal examiners showed laughable deference to large bank officials. Whether they were hoping to parley it into future employment or just feared that a bank complaining about them could impair their careers, Federal examiners walked on eggshells when dealing with large bank officials. It’s thinking like this that has led to every banking “problem” within living memory.
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Jay needs to spend more time with his family. Put Elizabeth Warren in charge of the Fed and we would have something.
UBS to buy the remains of Credit Suisse for a rumored $2 billion. $17.3 billion in CS AT1 bonds now worthless. Looks like the $54 billion bailout from other banks last week wasn’t enough. Finma to “suspend” anti-competition regulations to permit the acquisition. For those keeping score, Credit Suisse had about $500 billion in assets in Q4 2022, and was on the formal list of the world’s too big to fail banks.
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