Daniel K. Tarullo

Jun 5, 2024 | brookings.edu | Janice Eberly |Samuel Hanson |Jón Steinsson |Daniel K. Tarullo

The failure of three mid-sized banks in March 2023—three of the four largest bank failures in history—shook financial markets and could’ve spread to other banks if regulators hadn’t stepped in. Two on-going trends in finance contributed to these failures: an increase in uninsured deposits and the migration of business lending to non-banks.

May 22, 2024 | brookings.edu | Daniel K. Tarullo

The use of annual stress tests to set minimum capital requirements for large banks was among the most important innovations in prudential regulation following the Global Financial Crisis of 2007-2009. Using stress tests for this purpose promised greater risk sensitivity at the individual firm level and a better assessment of the banking system as a whole than the pre-crisis methods of setting fixed minimum capital requirements or using banks’ internal models.

Apr 20, 2023 | piie.com | Nicolas Véron |Daniel K. Tarullo |Sarah Bloom Raskin

Event SummarySilicon Valley Bank's collapse from textbook asset-liability mismanagement raised questions about US banking supervision and whether more could have been done to identify and address vulnerabilities earlier. This session will take stock of US bank supervision and related policy questions, including whether the subsequent decision to fully guarantee all of Silicon Valley Bank's deposits was justified and its implications for the banking sector moving forward.

Mar 17, 2023 | brookings.edu | Daniel K. Tarullo

The dramatic, though short-lived, disruption of the market for U.S. Treasury debt in September 2019 and the more profound market dislocations at the onset of the COVID crisis in March 2020 have raised the issue of whether the treatment of central bank reserves and sovereign debt in bank capital requirements exacerbated the problems.

Mar 15, 2023 | bostonglobe.com | Daniel K. Tarullo

The repercussions of the Silicon Valley Bank failure are still rippling through the financial system. While much remains to be learned about the management and regulatory failures that sparked this drama, some lessons are already clear. There was a serious lapse in supervision by the Federal Reserve and the California Department of Financial Protection and Innovation.