News about Silicon Valley Bank

Federal Reserve Governor Michelle Bowman said Fed supervisors knew about major vulnerabilities at Silicon Valley Bank at least 9 months before its 2023 failure but did not act appropriately. A newly released independent assessment found that persistent accountability and decision-making problems, rather than social media or regulatory changes as earlier claimed, were the main causes of delays in critical enforcement actions. SVB received 54 matters requiring attention or immediate attention between 2019 and its failure, but none required it to address its core interest-rate and liquidity risks. Bowman said the Fed was considering changes to its supervisory decision-making framework and urged international standard-setting bodies to focus on safety, soundness and financial stability.