The Federal Reserve released its assessment Friday of what led to Silicon Valley Bank's collapse, saying the lender's failure was due to a "textbook case of mismanagement" while taking some responsibility for insufficient supervision of the institution.
The report details the bank’s rapid growth, the challenges Fed supervisors faced in identifying SVB's vulnerabilities, and their reluctance to force the bank to fix them.
The review was led by Fed Vice Chair for Supervision Michael S. Barr, who wrote in a letter summarizing the report that SVB "failed because of a textbook case of mismanagement by the bank, saying "Its senior leadership failed to manage basic interest rate and liquidity risk. Its board of directors failed to oversee senior leadership and hold them accountable."
Barr added, "And Federal Reserve supervisors failed to take forceful enough action, as detailed in the report."... Read More: FOX Business