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Fed Blame Game on SVB Collapse Stretches From DC to California

  • San Francisco branch lost key people overseeing region’s banks
  • US central bank is undergoing its own review into supervision
Bloomberg business news
Tarullo: The Fed Set the Right Monetary Policy
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For the Federal Reserve system, oversight failures ahead of the collapse of Silicon Valley Bank ran coast to coast.

At the San Francisco Fed — largely responsible for monitoring SVB — there was heightened turnover among supervisory officials in recent years, according to people close to the situation. The culture under President Mary Daly at times put more emphasis on improving relationships among staff than installing people with strong oversight backgrounds, leading to departures, the people said.