STOCKS | Fed Review Finds Repeated Warnings on Silicon Valley Bank Were Mishandled

A new draft report found that Federal Reserve officials failed to properly respond to repeated warnings about Silicon Valley Bank's deteriorating financial condition before its 2023 collapse. According to Sina Finance, the review was commissioned by Fed Vice Chair for Supervision Michelle Bowman and prepared by Starling Trust Sciences. People familiar with the matter said regulators issued 54 formal warnings to Silicon Valley Bank between 2020 and 2022, but most focused on technology, operational risk, and compliance issues rather than reducing interest-rate exposure or depositor concentration. The report also said Fed staff did not force the bank to take sufficient steps to reduce risks tied to rising rates and to depositors with balances above the federal insurance limit. Bowman said the review supports her push to reform the Fed's bank supervision policies. Critics including Senator Elizabeth Warren said the report may be politically motivated, while White House spokesperson Kush Desai said Michael Barr failed to do his job and later issued a report widely seen as political.