Michael S. Barr: “SVB failed because of a textbook case of mismanagement by the bank and that Federal Reserve supervisors failed to take…”

Yes. I have been consistent in saying both that the system is strong and that we also need to think about stronger capital rules.

The Federal Reserve's rules, issued in the wake of the legislation that was issued in 2019, did have the effect of lowering supervisory and regulatory standards for firms.

I can say the banking system is sound and resilient. I think that was really the right thing to do.

FinCEN, and Treasury, should be following the money in these areas to expose the relationships between the cartels and the illicit financing.