Who can regulate The Federal Reserve (FED)? U.S. Treasury Secretary Scott Bessent sees systemic flaws from the collapse of Silicon Valley Bank.

During the 2023 collapse of Silicon Valley Bank (SVB), one question became the focus of public opinion: Does the Federal Reserve (FED) really know what it is doing? Treasury Secretary Scott Bessent candidly stated in an interview with Tucker Carlson that before the collapse of Silicon Valley Bank, the Federal Reserve and relevant regulatory agencies "were not looking at the real risks at all," but instead listed "climate change" as the biggest threat to the financial system, missing the best opportunity for early warning and regulation.

This financial crisis is not just the mistake of a single bank, but has revealed the systemic vulnerabilities of The Federal Reserve (FED) and the entire U.S. financial regulatory framework.

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Independent or Out of Control? Where Does the Federal Reserve's "Immunity Privilege" Come From?

As the most influential financial institution in the United States, the Federal Reserve (FED) is theoretically independent of the political system, allowing it to focus on implementing monetary policy, controlling inflation, and stabilizing financial markets. However, this "independence" has also made it a "mysterious machine" that cannot be effectively monitored in the absence of accountability mechanisms.

"How can you have an institution that has the most direct influence on the market, yet is almost free from political control?" — Tucker Carlson

SVB Collapse: The Biggest Risk Turns Out to Be... The Weather?

According to Besant, two weeks before the collapse of Silicon Valley Bank, the Federal Reserve (FED) and FSOC (Financial Stability Oversight Council) issued a report stating that 'climate change' is the number one systemic risk.

But the reality is:

Silicon Valley Bank's assets are overly concentrated in long-term bonds.

Customer funds are rapidly flowing out, resulting in a "slow-motion bank run."

The Federal Reserve (FED), as the main regulator, failed to notice the brewing risks.

"The climate is not the problem; the banks have collapsed." — Scott Bessenet

This tendency to prioritize political issues (such as DEI and climate) over financial risks themselves raises questions about whether the Federal Reserve (FED) has deviated from its core mission and gone astray.

Who is in charge of whom? The parties involved turn out to be their own people.

Even more astonishing is that the CEO of Silicon Valley Bank is actually a board member of the San Francisco Federal Reserve, which means he is simultaneously part of the regulator and the regulated.

This arrangement has raised serious concerns about "regulatory capture."

"Will you call your regulatory agency to take action against you?" — Tucker Carlson

This is not the first time in financial history. From the 2008 financial crisis to the collapse of SVB, the "revolving door" issue between the industry and regulators has always existed.

Trump-style common sense: If money can run away in an instant, how can you not back up the risks?

Besant quoted Trump's favorite term "common sense" to summarize the absurdity of the regulatory system:

"If you know that deposits can be transferred instantly with the push of a button, why are you still locking your assets in long-term bonds?"

This does not require a PhD in economics, just a bit of "common sense." However, in the process of chasing political issues, waging climate battles, and promoting slogans of diversity and equality, "common sense" seems to have disappeared from decision-making.

The trust crisis is the real systemic risk.

The collapse of SVB is not just a financial event, but it has also led the public to start questioning:

Is the financial system really secure?

Does the Federal Reserve (FED) still know its responsibilities?

Who can truly oversee this "unmanned organization"?

The American public is already tired of government agencies that "pretend to be in control."

This article Who can regulate the Federal Reserve (FED)? U.S. Treasury Secretary Scott Bessent sees systemic loopholes from the collapse of Silicon Valley Bank, first appearing in Chain News ABMedia.