Powell and Yellen Suggest Need to Review Regulations After Bank Failures
From New York Times, In Print — Mar 22nd, 2023
In the wake of the Silicon Valley Bank and Signature Bank failures, Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen signaled that stronger oversight and regulatory changes may be needed to prevent future crises. While Powell acknowledged shortcomings in Fed supervision and promised reforms, Yellen emphasized the urgency of reassessing liquidity requirements, stress tests, and executive accountability.
Henrietta Treyz, director of economic policy research at Veda Partners, noted that Yellen has limited legal tools at her disposal: “All she needs is approval from the president to tap into that basket,” Treyz said of the Treasury’s Exchange Stabilization Fund. “There are no other alternatives; there’s no chance of a bill passing Congress.” Her comments underscore the political gridlock surrounding banking reforms, even as regulators race to restore confidence in the financial system.
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