Fed admits oversight failure in Silicon Valley Bank collapse
The Federal Reserve's top regulator, Michael Barr, has admitted that the banking supervisors failed to take appropriate action to address the growing problems at Silicon Valley Bank before it collapsed last month. Barr stated that the supervisors did not fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity, and when they did find risks, they did not take sufficient steps to ensure the firm fixed those problems quickly enough. This signals a broad push to toughen rules on the industry.