Silicon Valley Bank repeatedly warned for one year before collapse: Report
Silicon Valley Bank (SVB) was under scrutiny by the U.S. Federal Reserve for one year for its risky practices before its collapsed March 10.
The Federal Reserve repeatedly warned the bank that it had problems, according to a person familiar with the matter.
According to a New York Times report In 2021, a Federal Reserve review of the bank found serious weaknesses in how it was handling key risks.
Supervisors at the Federal Reserve Bank of San Francisco, which oversaw SVB, issued six citations that the firm was doing a bad job of ensuring that it would have enough easy-to-tap cash on hand in the event of trouble.
By July 2022, SVB was in full supervisory review and placed under a set of restrictions that prevented it from growing through acquisitions.
Following the supervisory review It became clear to the Federal Reserve that the firm was using bad models to determine how its business would fare as the central bank raised rates.
The Federal Reserve was said to have alerted SVB but the bank did not fix its vulnerabilities.
By early 2023, SVB was in what the Fed calls a “horizontal review,” an assessment meant to gauge the strength of risk management.
The review identified additional deficiencies but it was too late. SVB collapsed on March 10.
The Fed has initiated an investigation into what went wrong with the banks oversight. The inquiry’s results are expected to be publicly released by May 1.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

States
Ekiti govt orders free treatment for rescued worshippers
Oyebanji directed the Ministry of Health and Human Services to oversee the welfare and well-being of the rescued worshippers.

States
Rescue operation ongoing for abducted Oyo pupils, teachers: Army chief
The victims were abducted on May 15 from three schools in the Orire Local Government Area of Oyo.

States
Gov. Radda vows zero tolerance for gender, child abuse
The governor pledged sustained collaboration with relevant stakeholders to strengthen prevention, response, and support mechanisms for GBV victims.

Diaspora
Consulate demands justice as another Nigerian killed in South Africa
The consulate called on the South African government to launch an investigation into all alleged murder cases and prosecute perpetrators.

Sport
Sports commission reaffirms commitment to hockey revival
Dikko said President Bola Tinubu approved the nationwide rehabilitation of sports infrastructure.

Ibadan
Oyo govt. desilts waterways to avert flooding
The commissioner said the second phase is currently ongoing across critical river channels and flood-prone locations.






