San Fran Fed was unaware of SVB’s issues, but likely knew of ‘their carbon footprint’
On Friday’s show of CNN International’s “First Move,” Harvard University economics professor and former chief economist of the International Monetary Fund Ken Rogoff wondered how the San Francisco Federal Reserve Francisco was unaware of the issues inside Silicon Valley Bank and remarked that “I’m sure the San Francisco Fed knew a lot about Silicon Valley Bank, probably about its carbon footprint .
Rogoff said it’s not just him who has questions about the San Francisco Fed’s handling of SVB, “everyone does.”
He continued: “So how can it be – I’m sure the San Francisco Fed knew a lot about Silicon Valley Bank, probably their carbon footprint. But why didn’t they know what was going on with it? It’s just surprising. And then when it happened, they weren’t technically insolvent right away. So why didn’t they give them cash right away and nip it in the bud? It’s hard to know. These things are moving so fast and there are so many political pressures. It’s hard to know. Again, this hasn’t happened everywhere, so it’s so hard to monitor this big banking industry. But it was an important bank, it will be greatly missed.
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