Former Federal Reserve supervision chief Randal Quarles rejected the Fed’s criticism of oversight on his watch in its report Friday on the failure of Silicon Valley Bank.
(Bloomberg) — Former Federal Reserve supervision chief Randal Quarles rejected the Fed’s criticism of oversight on his watch in its report Friday on the failure of Silicon Valley Bank.
The report, issued by his successor Michael Barr, provided “no evidence” of a shift in policy during his tenure, Quarles said in a statement after the Fed published a detailed study into the causes of SVB’s collapse last month.
One of Barr’s top takeaways was that “a shift in the stance of supervisory policy” impeded effective oversight by reducing standards and promoting a less assertive supervisory approach.
“The report provides no evidence at all for what it describes as one of its main conclusions – that a ‘shift in the stance of supervisory policy’ impeded effective supervision of the bank,” said Quarles.
He was appointed by President Donald Trump and served as vice chair for supervision from October 2017 until October 2021.
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