Fed’s Powell: Three takeaways from recent bank failures

The chair of the Federal Reserve shared Thursday three observations he had regarding global banking turmoil that originated in the United States earlier this year.

Jerome Powell, in a speech delivered to European bankers and regulators in Spain, said the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank—as well as the folding of Credit Suisse into its bigger Swiss competitor UBS—suggest banking regulators should “strengthen our supervision and regulation of institutions of the size of SVB.”

The Fed previously indicated a desire to make changes to supervisory requirements for banks with more than $100 billion in assets, following the release of a report in April that examined the agency’s shortcomings in detecting and escalating risks that led to the industry turmoil.