The Latest Breaking News from FDIC

Exception-based coverage signals to depositors that they might get some extra protection at a systemically important bank–and compounds risk.

New York (AFP) - US President Joe Biden called on banking regulators Thursday to reinstate tougher rules on midsized banks, saying that doing so would prevent future failures like that of Silicon Valley Bank.

Four senators from both parties released a draft bill to claw back executive compensation in the five years leading up to a bank failure.

A group of conservative Republicans representatives known as the House Freedom Caucus came out last week against any proposal that would lift the cap on deposit insurance, currently set at $250,000. Members of U.S. Congress on both sides of the aisle are understandably cautious about taking such a dramatic step…

The failure of Silicon Valley Bank on March 10, 2023, came as a shock to most Americans. Even people like myself, a scholar of the U.S. banking system who has worked at the Federal Reserve, didn’t expect SVB’s collapse.

Amid all the finger-pointing, Senators and speakers said more monitoring was needed in the banking sector.

A focus on FDIC insurance and Treasury-only money market or bond fund options can help safeguard investments when a banking crisis threatens.

Michael Barr, the nation’s top banking regulator, said Silicon Valley Bank was warned in the fall of 2021 that its interest rate model was not ‘aligned with reality.’

Washington (AFP) - US lawmakers accused regulators Tuesday of failing to do enough to prevent the collapse of Silicon Valley Bank earlier this month, despite knowing it was over-exposed to the risk of rising interest rates.