Fed investigation reveals flaws in Silicon Valley Bank collapse.

The Federal Reserve and FDIC are set to release reports on their oversight of Silicon Valley Bank and Signature Bank, respectively, following their collapse last month. The reports will examine whether there were lapses in supervision and whether mid-sized banks should undergo more frequent stress tests. The FDIC will also explore changes to the deposit insurance system, as both banks had a large share of deposits exceeding the usual $250,000 insurance limit. The backstopping of uninsured deposits will cost the FDIC's insurance fund an estimated $19.6 billion. The episode has left lingering scars, with other small banks seeing a record outflow of deposits totaling $119 billion, leading to a growing risk of a recession later this year.