In a hotly anticipated banking report released Friday morning, the Federal Reserve said it failed to take sufficient action to prevent the collapse of Silicon Valley Bank, while detailing serious management oversights by the lender’s executives. Silicon Valley Bank’s collapse on March 10 — followed two days later by that of Signature Bank — sent shock waves through the global banking system. “Following Silicon Valley Bank’s failure, we must strengthen the Federal Reserve’s supervision and regulation based on what we have learned,” said Michael Barr, the Fed’s vice chair for supervision. The report offers four key takeaways:Silicon Valley Bank’s leadership failed to manage risks. “While higher supervisory and regulatory requirements may not have prevented the firm’s failure, they would likely have bolstered the resilience of Silicon Valley Bank,” Barr said in the report.

Source: CNN April 29, 2023 01:24 UTC