The Federal Reserve has released an internal review blaming a rollback of regulations as one of the key culprits behind the collapse of Silicon Valley Bank. The collapse was the second-largest bank failure in U.S. history and forced the government to take extraordinary measures to backstop the banking system.
The review places blame on the bank itself, Fed supervisors, and regulatory rollbacks for the failure. The Fed vice chair for supervision, Michael Barr, who led the review, stated that the failure demonstrates a weakness in regulation and supervision that must be addressed. Fed chair Jerome Powell has endorsed the recommendations to address these rules and supervisory practices.
The 114-page report, completed in a little over a month, is the most comprehensive look so far at the failures on the part of supervisors and bank executives that led to the collapse of the bank. Barr said the Fed plans to reevaluate those changes, which apply to banks with $100 billion or more in assets.
Click to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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