Supervision Board Says Fed Dropped the Ball on SVB Oversight

At the time of its collapse, Silicon Valley Bank had 31 open supervisory findings, about 3 times as many as its peers


Lotus_studio/Shutterstock modified by Blockworks


The Federal Reserve had insufficient regulatory standards for recently closed Silicon Valley Bank, a new report finds. 

Fed Vice Chair for Supervision Michael Barr led the investigation into how Silicon Valley failed and the role the central bank played. 

“The supervision of SVB did not work with sufficient force and urgency, and contagion from the firm’s failure posed systemic consequences not contemplated by the Federal Reserve’s tailoring framework,” Barr wrote in the report, published Friday. 

At the time of its collapse, SVB had 31 open supervisory findings, which the Fed files when a bank has concerns requiring federal government attention. Other banks under the Fed’s purview had around 10 supervisory findings, the report added. 

The Fed noted risks in SVB’s liquidity, capital, management and asset quality, among other things, every year between 2020 and 2022 but did not file additional supervisory findings until November 2022. In this finding, the central bank announced plans to downgrade SVB’s rating related to interest rate risk, but Silicon Valley failed before the downgrade was made. 

Supervisory findings on the whole have been declining since 2014, the Fed notes in a separate report

The report criticizes former Fed Supervision head Randal Quarles, appointed under President Trump, for a “cultural shift” that led to more relaxed oversight over SVB and other institutions. 

Going forward, Barr says central bankers will work toward a “stronger regulatory framework.” 

“With respect to capital, we are going to evaluate how to improve our capital requirements in light of lessons learned from SVB,” Barr wrote in the report. “We are also going to evaluate how we supervise and regulate liquidity risk, starting with the risks of uninsured deposits.”

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit