Fed Slams Its Own Oversight of Silicon Valley Bank in Post-Mortem

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WASHINGTON — The Federal Reserve on Friday faulted itself for failing to “take forceful enough action” to address growing risks at Silicon Valley Bank ahead of the lender’s March 10 collapse.A sweeping — and highly critical — review conducted by Michael S. Barr, the Fed’s vice chair for supervision, identified lax oversight of the bank and said its collapse demonstrated “weaknesses in regulation and supervision that must be addressed.”“Regulatory standards for SVB were too low, the supervision of SVB did not work with sufficient force and urgency, and contagion from the firm’s failure posed systemic consequences not contemplated by the Federal Reserve’s tailoring framework,” Mr. Barr wrote in a letter accompanying the report.The review spanned hundreds of p …

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