The Federal Reserve’s review of the Silicon Valley Bank collapse reveals that the institution carried 31 unresolved supervisory findings at the time of its March 2023 failure, roughly three times the industry average for comparable banks. SVB’s assets nearly tripled from approximately $71 billion in 2019 to over $211 billion by 2021, yet supervisors only took formal action in November 2022, a few months before the bank’s collapse. A massive $40 billion bank run occurred on March 9, 2023, and the FDIC estimated the cost to the Deposit Insurance Fund at $16.1 billion. The review points to the post-2018 regulatory framework, which reduced oversight requirements for mid-sized banks, as a contributing factor. This analysis was led by Vice Chair for Supervision Michael S. Barr.
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