Comment by yieldcrv
3 years ago
public / private is a false dilemma
trusts, foundations, and a host of other entities are ‘orphaned’ entities and is essentially a third category which is more accurate for the Federal Reserve as well
The Board of Governors is a public entity with an appointment, and the rest of the entity has a rotation of members and pretty full autonomy on how it runs on the inside at the employee level
It's a club funded by interest rate skimming with opaque structure and reporting requirements which don't conform to typical reporting requirements. CEO of Silicon Valley Bank was on BoD of SFO branch, which failed to adequately regulate SVB.
https://www.svb.com/news/company-news/svb-financial-group-ce...
"SVB Financial Group CEO Elected to the Board of Directors of the Federal Reserve Bank of San Francisco"
why do you think it was a regulatory failure? it's not the Fed's job to make sure every bank has a sane business plan and rock solid conservative riskless strategy.
its job is to make sure the entire system can take the stress of failing banks.
the FDIC did its job too.
It's their job.
https://www.federalreserve.gov/supervisionreg/topics/capital...
The private club Federal Reserve branch in SFO was supposed to regulate SVB which had C-level executive on BoD of the regulator. The regulator failed to take prompt corrective action when SVB had capital inadequacy. SVB subsequently, months later, had inadequate capital to continue operating.
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