Fed Chair Hides Regulatory Shortcomings Amid Bank Rescue

Fed Blocks Mention Of Regulatory Flaws In Bank's Rescue

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Jerome Powell, the chair of the Federal Reserve, blocked phrases regarding regulatory failure by the Federal Reserve in the Silicon Valley Bank collapse, NYT reports.

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Federal government officials wanted a joint statement to address regulatory shortcomings that might lead to the bank’s demise.

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Report says: "But Jerome H. Powell blocked efforts to include a phrase mentioning regulatory failures in the joint statement released early Sunday evening by the Fed, the Treasury Department and the FDIC."

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The report cited several people involved in or close to the discussions.

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In defense, it is said he took phrases out as he wanted to focus on the actions being taken to shore up the financial system

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In the wake of the collapse, Powell has faced withering criticism for the supervisory and regulatory failure, most recently from a comprehensive ten-page letter sent by Sen. Elizabeth Warren.

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Apparently, President Biden in his official statement focused on finding “those responsible for this mess".

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