Since the COVID-19 public health crisis, the Federal Reserve system has undergone a cultural shift in supervision, and this may have been another contributing factor to the turmoil in the banking system, a House committee heard.
The House Financial Services Committee hosted a hearing on May 16. It featured testimony from Fed vice chair for supervision Michael S. Barr and Federal Deposit Insurance Corp. chair Martin Gruenberg.
Lawmakers combed through the central bank’s recent Supervision and Regulation Report that reviewed the failures of Silicon Valley Bank and Signature Bank and the reasons for their collapse. One of the findings within the review, which Barr spearheaded, was that there had been a cultural shift in Fed supervision, something that emanates from the coronavirus pandemic….