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After SVB, Barr weighs up move to close midsize bank loophole on reporting losses

Federal Reserve Board Vice Chair for Supervision Michael Barr
Federal Reserve Board Vice Chair for Supervision Michael Barr. Photo: Win McNamee/Getty Images

Federal Reserve considers ‘more stringent standards’ while FSOC ponders definition of systemic importance.

The US Federal Reserve is considering closing a loophole that allows some midsize banks to avoid reporting on losses on securities they hold, which was a contributing factor in the collapse of Silicon Valley Bank (SVB). 

As the WSJ reported Friday, the Fed’s vice chair for supervision, Michael Barr, is