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The Fed Was Too Late on SVB Even Though It Saw Problem After Problem

  • New team began flagging problem after problem as it took over
  • One of their predecessors got new role: monitoring Silvergate
Bloomberg business news
WATCH: (March 15) The Fed is looking into why SVB didn’t have a a chief risk officer for much of last year. Nabila Ahmed reports.Source: Bloomberg
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Just over a year before Silicon Valley Bank’s collapse threatened a generation of technology startups and their backers, the Federal Reserve Bank of San Francisco appointed a more senior team of examiners to assess the firm. They started calling out problem after problem.

As the upgraded crew took over, it fired off a series of formal warnings to the bank’s leaders, pressing them to fix serious weaknesses in operations and technology, according to people with knowledge of the matter.