- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-03-21T19:05:00
Treasury Secretary Janet Yellen said Tuesday federal regulators are willing to extend the same financial assistance—perhaps even extended deposit insurance—to mid-sized banks struggling to handle the fallout from the failures of Silicon Valley Bank (SVB) and Signature Bank.
Yellen, in remarks before the American Bankers Association, said similar intervention regulators offered the two failed banks “could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”
The Federal Deposit Insurance Corporation (FDIC) insured all $264 billion in combined deposits at SVB and Signature Bank, despite nearly 90 percent of the funds being in high-value accounts with balances above the agency’s $250,000 limit. The FDIC also offered loans to struggling banks to help them avoid selling off Treasury notes and mortgage-backed securities at a loss to fully fund withdrawal requests by depositors.
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The deposits and loans of the failed Silicon Valley Bank have been purchased by First Citizens Bank & Trust, although about $90 billion in securities and other assets will remain in receivership.
The stunning, rapid collapse of Silicon Valley Bank, fueled in its final days by droves of panicked depositors seeking funds, likely added to the chaos within the bank and ratcheted up the risk of fraud, according to legal experts.
President Joe Biden is calling on Congress to “do more to hold senior bank executives accountable” since the market turmoil that has followed the collapses of Silicon Valley Bank and Signature Bank.
When the DOJ released its revised Evaluation of Corporate Compliance Programs, it turned some heads. Tucked into a section on risk assessments was a strongly worded series of questions that appeared to shoulder compliance teams with the responsibility for ensuring the safe use of AI tools by their firms.
The Department of Justice’s Evaluation of Corporate Compliance Programs has made the importance of artificial intelligence governance frameworks clear, but it didn’t say what role compliance should play. Here’s the answer.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
