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

Federal Reserve staff had access to information indicating Silicon Valley Bank faced significant liquidity and capital risks before its March 2023 collapse, according to a report released by the Federal Reserve's Office of Inspector General. The bank failed after a run on deposits in March 2023 and was taken over by the Federal Deposit Insurance Corporation. The Inspector General's office found that examination findings and risk assessments available to Fed staff showed the bank's vulnerabilities, though the report did not conclude that specific individuals failed to act on available information. SVB's failure resulted in approximately $16 billion in deposit losses that were not covered by FDIC insurance.

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