Federal Deposit Insurance Corp – Page 4

Fed Vice Chair Calls Silicon Valley Bank a ‘Textbook Case of Mismanagement’

The Federal Reserve’s top bank cop blamed Silicon Valley Bank’s leaders, while previewing the cental bank’s review of its faulty oversight.

The Federal Deposit Insurance Corporation, which announced the deal late Sunday, had been looking for a buyer since seizing control of the bank.

Proposals for more scrutiny of the financial sector are meeting resistance from industry and Congress.

The market hadn’t fully rebounded from the pandemic. Some worry that another slowdown could add to fears of a recession.

The government only insures deposits of less than $250,000, but there is precedent for lifting that cap amid turmoil. It could happen again.