Fed report blames mismanagement and oversight for Silicon Valley Bank collapse.
TL;DR Summary
The Federal Reserve has blamed the collapse of Silicon Valley Bank on poor management, watered-down regulations, and lax oversight by its own staffers. The report also criticized the bank for tying executive compensation too closely to short-term profits and the company’s stock price. The passive approach stemmed from actions taken by Congress and the Fed in 2018 and 2019 that lightened rules and regulations for banks with less than $250 billion in assets. The report is likely to reignite a debate about the proper scope of bank regulation.
Topics:business#bank-failure#bank-regulation#federal-reserve#finance#signature-bank#silicon-valley-bank
- Fed faults Silicon Valley Bank execs, itself in bank failure The Associated Press
- Fed report on Silicon Valley Bank collapse blames mismanagement, weak government oversight Fox Business
- Fed: Silicon Valley Bank failed to manage basic interest rate, liquidity risk CNBC Television
- Fed Slams Its Own Oversight of Silicon Valley Bank in Post-Mortem The New York Times
- Fed blames mismanagement and oversight failures for Silicon Valley Bank collapse PBS NewsHour
Reading Insights
Total Reads
0
Unique Readers
0
Time Saved
5 min
vs 6 min read
Condensed
92%
1,111 → 88 words
Want the full story? Read the original article
Read on The Associated Press