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My (limited) understanding is that a state chartered bank is still regulated at the federal level. From https://en.wikipedia.org/wiki/Bank_regulation_in_the_Un

• shagie 4y ago
  > State regulation of state-chartered banks and certain non-bank affiliates of federally chartered banks applies in addition to federal regulation. State-chartered banks are subject to the regulation of the state regulatory agency of the state in which they were chartered. For example, a California state bank that is not a member of the Federal Reserve System would be regulated by both the California Department of Financial Institutions and the FDIC. Likewise, a Nevada state bank that is a member of the Federal Reserve System would be jointly regulated by the Nevada Division of Financial Institutions and the Federal Reserve. And from https://www.fdic.gov/about/what-we-do/index.html https://www.fdic.gov/about/what-we-do/index.html > The FDIC directly supervises and examines more than 5,000 banks and savings associations for operational safety and soundness. Banks can be chartered by the states or by the Office of the Comptroller of the Currency. Banks chartered by states also have the choice of whether to join the Federal Reserve System. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System. In addition, the FDIC is the back-up supervisor for the remaining insured banks and savings associations.
  • thunky 4y ago
    Right, but in SVB's case, since they are a member of the Federal Reserve System (like the Nevada example), they were regulated by the Federal Reserve in additional to the State. The California bank in that example is regulated by FDIC because it's not a member of the Federal Reserve System.