By Hannah Lang
WASHINGTON (Reuters) -Stricter banking regulations would not have prevented Silicon Valley Bank’s sudden failure last month, a top official at the Federal Deposit Insurance Corporation (FDIC) said on Wednesday, highlighting instead management failures behind its demise.
Regulators were unable to quickly sell Silicon Valley Bank last month in part because the bank could not quickly provide key data for potential bidders, said FDIC Vice Chairman Travis Hill, in his first public remarks since being sworn into the role earlier this year.Â
A series of U.S. bank failures have roiled the global banking sector over the last month. Silicon Valley Bank’s sudden collapse underscores the need for regulators, including the Federal Deposit Insurance Corporation, Treasury Department and Federal Reserve, to move quickly to find buyers for troubled banks, Hill said at an event in Washington.
The FDIC should consider requiring more “innovative” financial reporting, he said. A firm also needs to be able to quickly hand over a list of key employees to the FDIC, he said.
Hill was confirmed by the Senate as the FDIC’s vice chairman in December for one of the Republican slots on the regulator’s board. The FDIC has a five-person board, including Hill, Chair Martin Gruenberg, the director of the Consumer Financial Protection Bureau and the Comptroller of the Currency.
(Reporting by Hannah LangWriting by Chris Prentice Editing by Lananh Nguyen and Sharon Singleton)
