38 min ago
Powell Weighs in on Bank Failures, Regulation in New Trump Era
Powell pushed back against the idea that regulators should have been punished following the failure of Silicon Valley Bank and other regional banks in early 2023, describing how the regulatory system has changed since then.
Powell outlined changes to the central bank’s regulatory processes and controls that have been made following those failures. He was responding to a question from Sen. Tim Scott about why no regulators were held accountable.
“This was not a case of malfeasance…it was a case of people carrying out a specific playbook that failed to cause us to act in time,” Powell said.
