The Federal Reserve has hired an external firm to conduct a review of the Silicon Valley Bank failure, Fed Vice Chair for Supervision Michelle Bowman said today.
During an interview with Fox Business Network’s “Mornings with Maria,” Bowman said the failure was the result of supervision and bank management. The external review is “to ensure that we don’t repeat the same mistakes going forward.” Reuters reported her comments.
The Fed previously conducted its own review of the failure in 2023. That review laid much of the blame for the bank’s failure on bank management, but it also faulted the Fed supervisors for not identifying issues quickly enough and being too slow to act when they did find problems.
Bowman has pushed for an independent external review since 2023, arguing it was needed to provide relevant data before moving ahead with a regulatory response.
