BOMBSHELL

Feds Warned Silicon Valley Bank of Major Issues Years Before Crash

The Federal Reserve warned the bank of “matters requiring immediate attention” in 2021.

The Federal Reserve had been monitoring Silicon Valley Bank’s shaky ground for more than a year, repeatedly warning the bank of its problems, a source has told the New York Times. The Fed issued six citations after conducting a review in 2021, citing “matters requiring immediate attention.” The review found the bank wasn’t prepared for trouble and didn’t have enough prepared cash on hand. However, SVB didn’t course correct despite the warnings, leading many to question why the bank allowed its problems to go unchecked prior to its disastrous implosion. Some have lobbed criticism at Fed chair Jerome Powell for allowing too much deregulation during Trump’s presidency, including Sen. Elizabeth Warren (D-MA), who has called for an independent review without Powell at the helm. Michael Barr, the Fed’s vice chair for supervision, is leading an investigation into how the bank’s oversight went so awry, while the House Financial Services Committee has scheduled a hearing for March 29 as the government continues analyzing the fallout of several major banks.