Powell Says Archegos Collapse Revealed Breakdowns at Some Banks
- Fed chief says agency is looking into firms’ risk management
- Powell says wasn’t the Fed’s job to manage those institutions
Jerome Powell
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Chairman Jerome Powell said the central bank is examining the Archegos Capital Management blowup because it revealed risk-management failures at a number of banks his agency supervises.
“It seems as though there were risk-management breakdowns at some of the firms -- not all of them -- and that’s what we’re looking into,” Powell said at a press conference Wednesday. He also defended the Fed’s role as an industry supervisor, saying his examiners aren’t responsible for taking control to stem losses by lenders. “We don’t manage their companies for them,” he said.