Covering collapse of SVB could cost $20 billion, FDIC chair to tell Congress

TL;DR

By Sarah Ewall-Wice"I would emphasize that these estimates are subject to significant uncertainty and are likely to change, depending on the ultimate value realized from each receivership," Gruenberg, whose agency was appointed to manage both banks after their collapse, is expected to tell lawmakers Tuesday when he testifies before the Senate Banking Committee.  "SVB failed because the bank's management did not effectively manage its interest rate and liquidity risk, and the bank then suffered a devastating and unexpected run by its uninsured depositors in a period of less than 24 hours," Federal Reserve Vice Chair of Supervision Michael Barr will tell senators according to his prepared remarks about the bank, which collapsed on Mar. The FDIC aims to issue more information on those assessments related to the failures of Signature Bank and Silicon Valley Bank, taking into account input from the public comment process in May

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