SVB collapse threatened banks across the US – Fed’s Barr

SVB’s failure appeared to pose a systemic risk to the US banking system, Federal Reserve vice-chair Michael Barr told Congress on March 28.

“It appeared that contagion from SVB’s failure could be far-reaching and cause damage to the broader banking system,” said Barr.

Barr told the Senate Banking Committee there were signs of stress across the system and at other banks. Regulators’ best assessment was that contagion in the banking system put depositors and banks across the country at risk