Failure of Oversight: The Fed's Blinders on Silicon Valley Bank The latest report from the Federal Reserve's internal review highlights the devastating consequences of complacency and hubris within even the most well intentioned institutions.
The news that the Fed's staff "knew, or should have known," about Silicon Valley Bank's vulnerabilities before its collapse in 2023 raises fundamental questions about the regulator's role in preventing financial crises.
The report's findings are particularly galling given the circumstances of the bank's failure. As interest rates rose, Silicon Valley Bank's large holdings of U. S.