An iron law of the modern-day administrative state is that the service to regulative failure is constantly to provide regulators more power. That’s the essential to comprehending Federal Reserve Vice Chair for Guidance Michael Barr’s autopsy, launched Friday, of Silicon Valley Bank’s (SVB) failure.
The report uses a token mea culpa for not having actually reacted quickly enough to problems at the bank. However that’s generally a deflection from the report’s primary function, which is to secure the Fed and reinforce the Biden Administration’s monetary regulative program. It yields that inspectors at the San Francisco Fed flagged many issues at SVB well prior to its failure, however it states they were handcuffed by higher-ups in Washington and a 2018 law that reduced policies on mid-sized banks.
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