The Monday after Silicon Valley Bank's implosion saw the Federal Reserve pledging to look inward, President Joe Biden calling for tougher rules on banks, and congressional Republicans pushing back on Democratic finger-pointing.
The Fed announced that Vice Chair for Supervision Michael Barr will lead a review focused on its supervision and regulation of Silicon Valley Bank, a major California-based regional bank whose Friday morning failure marked the second-largest ever in U.S. banking history.
Read the full article here: SVB Failure Spurs Fed Soul-Searching, Political Blame Game - Law360
"Certainly liquidity management will be a first-strike target for regulators in the near-term," said Mark Chorazak, a partner in Shearman & Sterling LLP's global financial institutions advisory and financial regulatory practice who pointed to liquidity stress-testing as a particular area of possible interest. Regulators will likely want to scrutinize "the assumptions that are used when thinking about potential deposit outflow rates of banks under stress conditions," Chorazak said.
