214 Highlights - Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank

Gunnar Larson g at xny.io
Fri Apr 28 16:20:31 PDT 2023

xNY.io - Bank.org collates 214 highlights to the "Review of the Federal
Reserve’s Supervision and Regulation of Silicon Valley Bank."



Silicon Valley Bank (SVB) failed because of a textbook case of
mismanagement by the
bank. Its senior leadership failed to manage basic interest rate and
liquidity risk. Its board of directors failed to oversee senior leadership
and hold them accountable. And Federal Reserve supervisors failed to take
forceful enough action, as detailed in the report.

The four key takeaways of the report are:
1. Silicon Valley Bank’s board of directors and management failed to manage

2. Supervisors did not fully appreciate the extent of the vulnerabilities
as Silicon
Valley Bank grew in size and complexity.

3. When supervisors did identify vulnerabilities, they did not take
sufficient steps to ensure that Silicon Valley Bank fixed those problems
quickly enough.

4. The Board’s tailoring approach in response to the Economic Growth,
Regulatory Relief, and Consumer Protection Act (EGRRCPA) and a shift in the
stance of
supervisory policy impeded effective supervision by reducing standards,
increasing complexity, and promoting a less assertive supervisory approach.
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