by Dismal-Jellyfish
Source: www.fdic.gov/news/press-releases/2023/pr23033a.pdf
Regulators Knew Silicon Valley Bank Was in Trouble Since 2021, Did Not Step In
A closer look at the months leading up to the collapse of Silicon Valley Bank, the second-largest bank collapse in history, shows that regulators saw the warning signs since last year but did not step in.
SVB’s collapse sent shockwaves through the markets, destabilized the economy, and raised fears of a domino effect of other banks. Seemingly backing those fears, other banks have recently collapsed as well.
House Oversight Republicans are now reporting that the Federal Reserve Bank of San Francisco was well aware of SVB’s problems beginning in 2021 but did little to address them.
“SF Fed appears to have failed to adequately supervise SVB and respond to the bank’s mismanagement, ultimately leading to SVB’s seizure by federal regulators – the second largest bank failure in U.S. history – and threatening a panic in our banking system,” House Oversight Republicans, led by Chairman James Comer, R-Ky., said in a letter to to the president and CEO of the Federal Reserve Bank of San Francisco, kicking off an investigation into the regulator’s role in the collapse.
The letter lays out troubling details about SF Fed’s oversight of the troubled bank, showing that at least six “Matters Requiring Attention” were filed against the bank, but these were citations that did not require the bank to change.
It’s going to get worse t.co/L8hW5CwRlu
— Catturd ™ (@catturd2) April 28, 2023