Federal Reserve may tighten financial rules after US bank failures, Powell says

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell says the central bank may have to tighten its oversight of the American financial system after the failure of three large U.S. banks this spring. Powell said Thursday that tougher regulations put in place following the 2007-2008 financial crisis have made large multinational banks much more resilient to widespread loan defaults. But Powell says the collapse of Silicon Valley Bank and two other banks exposed different vulnerabilities that the Fed will likely address through new proposals. He didn’t provide details, but other Fed officials have said banks should be required to hold more capital in reserve to guard against loan losses. That’s likely to face resistance from the banking industry and some congressional Republicans.