Fed to consider tough rules for midsize banks following SVB failure- report
Mar. 14, 2023 7:21 PM ETSVB Financial Group (SIVBQ), SBNYFRCBBy: Joshua Fineman, SA News Editor63 Comments
- The Federal Reserve is evaluating tougher rules for midsize banks after the failures of Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY).
- The regulator is looking at tougher capital and liquidity requirements and is looking to beef up annual "stress tests" that assess banks' ability to weather a potential recession, according to a WSJ report, which cited people familiar. The rules may target firms with $100 billion to $250 billion in assets.
- Shares of several regional banks plunged on Monday in the wake of the Silicon Valley (SIVB) and Signature Bank (SBNY) failures, though many, including First Republic (FRC) rebounded on Tuesday.
- Earlier Tuesday, a group of Democrats led by Sen. Elizabeth Warren (D-MA) and Rep. Katie Porter (D-CA) proposed legislation to restore bank regulations that were undone by former President Donald Trump.