Sheila Bair, a top banking regulator during the 2008 global financial crisis, said she hopes “people keep their head” after SVB’s collapse, adding that she believes that the problem facing the banking sector is more about fear than bank insolvency.
Appearing on CNN This Morning, Bair told anchor Poppy Harlow that it’s “not clear” if more banks will fail, but said that the Silicon Valley Bank was embroiled in an “unusual situation.”
“I do hope people keep their head,” Bair said. “I think most of these regional banks are just fine, but it concerns me that everybody is getting tagged with the same problems Silicon Valley Bank had and that was an unusual situation.”
“I do think fear is the problem now, not so much bank solvency trouble,” she added. “I don’t see any pervasive problems in our banking system,” she added.
Bair also reiterated that the Federal Reserve needs to halt its war on inflation.
“The Fed needs to hit pause and assess the full impact of its actions so far before raising short rates further,” Bair, the former chair of the Federal Deposit Insurance Corporation, previously told CNN.
Erika Ayers Badan: How to Keep Creativity Alive
Hi! Ever felt like you’re on a Disney ride through every big-company headache imaginable? Think lawyers, bankers, finance goons, stale conference rooms, staid conversations and…
Thought Leader: Erika Ayers Badan
Mike Bird: How Land Could Trigger the Next Global Economic Shock
Mike Bird is the Wall Street editor for The Economist, leading coverage of topics across the American financial industry and contributing to coverage of finance…
Thought Leader: Mike Bird
Loretta Mester on Rates, Inflation & What’s Ahead
Former Cleveland Fed President Loretta Mester joins ‘Squawk Box’ to discuss the Fed’s interest rate decision, what to expect from the central bank’s policy meeting…
Thought Leader: Loretta Mester
