Federal Reserve supervisory teams were aware—or should have been—of significant risks at Silicon Valley Bank before its collapse, according to a new review led by the central bank’s vice chair for supervision. The findings, drawn from an independent assessment by an outside consulting firm, indicate that the bank’s downfall stemmed from critical failures in risk management and oversight. The review highlights concerns over whether regulators adequately addressed growing vulnerabilities in the institution, which became the largest U.S. bank failure since the 2008 financial crisis. The report raises questions about whether early warnings were missed or overlooked in the lead-up to the crisis.
A new review of the Silicon Valley Bank collapse found Federal Reserve supervisory staff “knew or should have known” about the institution’s vulnerabilities, Michelle Bowman, the Fed's vice chair for supervision, said Friday. The initial findings from an outside consulting firm's independent review suggested the biggest bank failure since the 2008 financial crisis resulted from...
