Review Finds Fed Staff Should Have Known About Silicon Valley Bank Risks

A new review of the Silicon Valley Bank collapse has found that Federal Reserve supervisory staff 'knew or should have known' about the institution’s vulnerabilities, according to Michelle Bowman, the Fed’s vice chair for supervision. The findings, from an outside consulting firm’s independent review, suggest that the bank’s failure—considered the largest since the 2008 financial crisis—resulted from factors that Fed staff should have identified. Bowman noted that the report indicates the central bank’s staff missed signs ahead of the bank’s 2023 failure. The review highlights concerns about the Fed’s oversight and its ability to detect risks in financial institutions. No specific details about the review’s methodology or further conclusions were provided in the summaries. The findings are expected to contribute to ongoing discussions about regulatory reforms and oversight practices.