• Latest
  • Trending
  • All
  • News
  • Lifestyle
Fed Official Blames Banking Crisis on Trump Administration, Not Crypto thumbnail

Fed Official Blames Banking Crisis on Trump Administration, Not Crypto

April 29, 2023
Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry thumbnail

Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry

July 18, 2025
Democrats push for vote on Epstein files thumbnail

Democrats push for vote on Epstein files

July 16, 2025
Nor'easters slamming New England are growing more powerful thumbnail

Nor’easters slamming New England are growing more powerful

July 16, 2025
10 Disaster Movies That Actually Get Some Science Right thumbnail

10 Disaster Movies That Actually Get Some Science Right

July 14, 2025
Trump threatens 35% tariffs on Canadian goods thumbnail

Trump threatens 35% tariffs on Canadian goods

July 13, 2025
Superman the Immigrant Would Have Saved Texas thumbnail

Superman the Immigrant Would Have Saved Texas

July 12, 2025
Iowa Democrats plot 2028 comeback for caucuses in race for president thumbnail

Iowa Democrats plot 2028 comeback for caucuses in race for president

July 11, 2025
Lionel Messi Makes MLS History with 4th Straight Multi-Goal Game in Inter Miami Win thumbnail

Lionel Messi Makes MLS History with 4th Straight Multi-Goal Game in Inter Miami Win

July 10, 2025
Do tech executives in US Army present conflict of interest? thumbnail

Do tech executives in US Army present conflict of interest?

July 10, 2025
A Vermont dairy farm was raided. The mixed messages from Washington since then have increased fears. thumbnail

A Vermont dairy farm was raided. The mixed messages from Washington since then have increased fears.

July 8, 2025
Former Rams Assistant Gives Inside Look at Houston Texans Offense thumbnail

Former Rams Assistant Gives Inside Look at Houston Texans Offense

July 7, 2025
‘Alligator Alcatraz’ Detention Center Poses Serious Risks to Immigrants Beyond Just Alligators thumbnail

‘Alligator Alcatraz’ Detention Center Poses Serious Risks to Immigrants Beyond Just Alligators

July 7, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • Donate
Saturday, July 19, 2025
66 °f
Wellfleet
58 ° Tue
63 ° Wed
68 ° Thu
61 ° Fri
  • Login
  • Register
FREE Cape Cod News
DONATE
  • FREE Cape Cod News
  • Cape Cod News
  • News
    • News
    • Massachusetts
    • Breaking News
    • Cape Cod Weather
    • Storm Watch
    • Environment
  • Politics
    • democrats
    • republicans
  • Business
    • business
    • cryptocurrency
    • economy
    • money
    • Real Estate
    • Tech
  • World
  • Entertainment
  • Lifestyle
  • Photos
    • Orleans
    • Eastham
    • Wellfleet
    • Truro
    • Provincetown
    • Brewster
    • Chatham
  • Videos
No Result
View All Result
Free Cape Cod News
No Result
View All Result
  • FREE Cape Cod News
  • Cape Cod News
  • News
  • Politics
  • Business
  • World
  • Entertainment
  • Lifestyle
  • Photos
  • Videos
Home Business Cryptocurrency News

Fed Official Blames Banking Crisis on Trump Administration, Not Crypto

FREE Cape Cod News by FREE Cape Cod News
April 29, 2023
in Cryptocurrency News, News
Reading Time: 3 mins read
Donate
0
Fed Official Blames Banking Crisis on Trump Administration, Not Crypto thumbnail
633
SHARES
1.4k
VIEWS
Share on TwitterShare on Facebook

A lack of regulation and supervision is largely to blame for the recent banking crisis. That is the conclusion of a recent report from a high-ranking Federal Reserve official. Another report, from the Congressional Research Service, emphasizes crypto’s role. The lack of unanimity is striking.

The recent banking crisis is due, in part, to lax regulation and supervision, according to a report by Michael S. Barr, the Vice Chair of Supervision at the Federal Reserve. The report surveys the regulation and supervision of Silicon Valley Bank (SVB). According to Barr, SVB failed largely due to mismanagement by senior leadership and a lack of oversight by the board of directors.

Trump Deregulated Banks

“We must strengthen the Federal Reserve’s supervision and regulation based on what we have learned. This report represents the first step in that process,” the report states.

Barr’s report does briefly mention crypto as a risk for banks. But the word “crypto” turns up only three times in a 118-page report. The report largely blames supervisory failures. And it is blunt about who bears a lion’s share of responsibility here.

President Trump dramatically deregulated the banking sector during his four years in office. Including rolling back parts of the Dodd-Frank Act, easing the Volcker Rule, and weakening the Consumer Financial Protection Bureau.

The report states that the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2019 resulted in “lower supervisory and regulatory requirements” for Silicon Valley Bank. These also included lower capital and liquidity requirements.

Moreover, the report acknowledges that “while higher supervisory and regulatory requirements may not have prevented the firm’s failure, they would likely have bolstered the resilience of Silicon Valley Bank.”

On Friday, March 10, 2023, state regulators shut down Silicon Valley Bank (SVB) after a bank run. The collapse became the second-largest bank failure in United States history and the biggest since the 2007-2008 financial crisis.

Additionally, two other banks in the United States, Signature and Silvergate, also failed in March 2023.

Crypto was listed as the fifth biggest risk for Reserve Banks. Source: Federal Reserve

The report highlighted the weaknesses in regulation and supervision, including the need for strengthening supervisory and regulatory frameworks. It emphasizes the importance of strong bank capital and the need to continuously evaluate the supervisory and regulatory framework to spot new and emerging risks.

In Barr’s view, a stronger supervisory framework could enhance the speed, force, and agility of supervision. Especially for firms with rapid growth, concentrated business models, or other high-risk factors.

President Joe Biden has previously urged Congress to introduce tougher regulations. In order to make it “less likely this kind of bank failure would happen again.”

Banks Undone by Withdrawal Demand

In contrast to Barr’s analysis, another recent report by the Congressional Research Service evaluated the role of cryptocurrency in the banking crisis. The document looked at Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank.

The April 25 report noted all three banks had exposure to the cryptocurrency industry, holding deposits, making loans, and providing payment networks to crypto firms.

Silvergate had the highest concentration in the crypto industry. Over 90% of its total deposits came from crypto client deposits. SVB and Signature Bank had relatively modest exposure.

The report found that there were links between banking failures and specific crypto company failures. Crypto’s volatility contributed to the depletion of deposits. In some cases, banks sold ostensibly safe securities for losses to meet withdrawal demand.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Read More

Tags: bankingbankruptcycryptocurrency

FREE Digital Newspaper Subscription!
Sign up for your free digital subscription. The FREE Cape Cod News

Unsubscribe
FREE Cape Cod News

FREE Cape Cod News

Free Cape Cod News is what's happening in the Cape Cod, U.S and World & what people are talking about right now. Local newspaper. Stay in the know. Subscribe to get notified about our latest news.

Related Posts

Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry thumbnail
Business

Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry

by FREE Cape Cod News
July 18, 2025
Democrats push for vote on Epstein files thumbnail
News

Democrats push for vote on Epstein files

by FREE Cape Cod News
July 16, 2025
Nor'easters slamming New England are growing more powerful thumbnail
News

Nor’easters slamming New England are growing more powerful

by FREE Cape Cod News
July 16, 2025
Trump threatens 35% tariffs on Canadian goods thumbnail
News

Trump threatens 35% tariffs on Canadian goods

by FREE Cape Cod News
July 13, 2025
Load More
Please login to join discussion

Follow Us on Twitter

FREE Cape Cod News - Your source for local Cape Cod news, latest breaking U.S. and World news. Every day, all day. Subscribe for your favorite categories.

  • Trending
  • Comments
  • Latest
Drinking and Boating in Massachusetts. Free Cape Cod News.

Drinking and Boating in Massachusetts

July 23, 2023
People on the beach, Cape Cod, Massachusetts

Exploring the Nuances: Debunking Cape Cod’s Overrated Reputation

May 29, 2023
Biden: Americans with long-COVID symptoms may qualify for disability resources thumbnail

Biden: Americans with long-COVID symptoms may qualify for disability resources

July 27, 2021
Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry thumbnail

Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry

0
Nor'easters slamming New England are growing more powerful thumbnail

Nor’easters slamming New England are growing more powerful

0
Democrats push for vote on Epstein files thumbnail

Democrats push for vote on Epstein files

0
Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry thumbnail

Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry

July 18, 2025
Democrats push for vote on Epstein files thumbnail

Democrats push for vote on Epstein files

July 16, 2025
Nor'easters slamming New England are growing more powerful thumbnail

Nor’easters slamming New England are growing more powerful

July 16, 2025

FREE Cape Cod News On Twitter

Today’s News

  • Crypto Clash: Warren Flags Economic Risk, CZ Defends Industry July 18, 2025
  • Democrats push for vote on Epstein files July 16, 2025
  • Nor’easters slamming New England are growing more powerful July 16, 2025
  • 10 Disaster Movies That Actually Get Some Science Right July 14, 2025
  • Trump threatens 35% tariffs on Canadian goods July 13, 2025
FREE Cape Cod News

Copyright © 2024 Free Cape Cod News

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • Donate

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • FREE Cape Cod News
  • Cape Cod News
  • News
    • News
    • Massachusetts
    • Breaking News
    • Cape Cod Weather
    • Storm Watch
    • Environment
  • Politics
    • democrats
    • republicans
  • Business
    • business
    • cryptocurrency
    • economy
    • money
    • Real Estate
    • Tech
  • World
  • Entertainment
  • Lifestyle
  • Photos
    • Orleans
    • Eastham
    • Wellfleet
    • Truro
    • Provincetown
    • Brewster
    • Chatham
  • Videos
  • Login
  • Sign Up

Copyright © 2024 Free Cape Cod News