Fed Official Cites Risk Aversion in SVB Collapse
A new review commissioned by Federal Reserve official Michelle Bowman indicates that examiner risk aversion hindered oversight of Silicon Valley Bank. The findings contradict previous assessments regarding the 2023 bank failure.
A culture of risk aversion among bank examiners contributed to the 2023 collapse of Silicon Valley Bank, according to a review released on Friday afternoon. The findings from United States Federal Reserve officials challenge previous postmortems of the failure. The report arrives as bank regulators weigh sweeping changes to rules and oversight for regional lenders.
