Review says Fed supervisors failed to act on Silicon Valley Bank risks
An outside review commissioned by the Federal Reserve found that supervisors knew or should have known of Silicon Valley Bank’s vulnerabilities by March 2022.
An independent review commissioned by Fed supervision chief Michelle Bowman found that supervisory staff did not take prompt action after they knew or should have known about Silicon Valley Bank’s vulnerabilities by March 2022.
The review attributed the 2023 collapse to several weaknesses, including unrealized losses and reliance on uninsured deposits, and said the delayed response was not caused by the 2018 rollback of some Dodd-Frank requirements.