The US Fed is looking into the circumstances surrounding Silicon Valley Bank’s demise, including its supervision and regulation of the now-defunct financial institution.
The Board of Governors of the US Federal Reserve will meet in an emergency session behind closed doors on Monday due to the consequences of the Silicon Valley Bank. The meeting will take place via audio/video conference call and at the Board’s headquarters at 20th and C Street, N.W., Washington, D.C., following the expedited procedures outlined in section 261b.7 of the Board’s Regulations Regarding Public Observation of Meetings.
US Fed Facing Internal Investigation
The Federal Reserve Banks will review and decide on the advance and discount rates to be imposed during the meeting, according to a statement provided by the Fed. California lawmakers will receive SVB briefing from FDIC, US Fed, and Treasury
In the meantime, after having to postpone a briefing originally scheduled for earlier in the day, Federal Deposit Insurance Corp. along with the Federal Reserve strategy to brief California’s caucus on the implosion of Silicon Valley Bank at 11:00 pm on Saturday, according to 3 persons familiar with the plan.
According to one of the persons, the Treasury Department will provide a separate presentation for the lawmakers on Sunday at 1:00 p.m. The situation is unstable, therefore plans could be modified.
The briefings coincide with discussions on the potential measures the US administration may need to take to stop the spread of infection.
According to sources close to the matter, the FDIC and the Federal Reserve are considering setting up a fund that would enable the regulatory agencies to safeguard more deposit accounts at banks that encounter difficulties in the wake of Silicon Valley Bank’s collapse to reassure depositors and quell any panic.