Fed staff should have known Silicon Valley Bank was vulnerable, new report finds

An outside review of the Federal Reserve's oversight of the failure of Silicon Valley Bank in 2023 has found that the Fed's staff "knew, or should have known," that the bank was vulnerable prior to the crisis, Fed Vice Chair for Supervision Michelle Bowman said Friday. Bowman announced the results of the review, by the consulting firm Starling Advisory Group, in a speech in London Friday. Silicon Valley Bank experienced a run in March 2023 after the bank announced it had sold securities at a $1.8 billion loss and needed to raise more capital. The bank's large holdings of U.S. Treasuries had lost value after the Fed began raising interest rates.