"We are prepared to use all of our tools for any size institution as needed to keep the system safe," Federal Reserve Vice Chair for Supervision Michael Barr's prepared testimony to Congress reads, as reported by Reuters.

Additional takeaways

"Banking system is sound and resilient."

"Recent actions demonstrate we are committed to ensuring all deposits are safe."

"Committed to ensuring Federal Reserve fully accounts for any supervisory or regulatory failings around Silicon Valley Bank."

"It appeared contagion from SVB's failure could be far-reaching and damage the broader banking system."

"SVB had inadequate risk management, supervisors found deficiencies in its liquidity risk management near the end of 2021."

"Fed is examining whether applying more stringent standards would have prompted SVB to better manage risks."

"We plan to propose long-term debt requirement for large regional banks, need to enhance stress testing, explore changes to liquidity rules."

Market reaction

This headline doesn't seem to be having a significant impact on risk mood. As of writing, the Dow Jones Industrial Average was up 0.5% on the day.