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By Pete Schroeder
Fri, March 20, 2026 astatine 8:40 AM CDT 1 min read
By Pete Schroeder
NEW YORK, March 20 (Reuters) - Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that the U.S. cardinal slope is taking different look at what went incorrect with Silicon Valley Bank 3 years ago.
“What happened there was truly a nonaccomplishment of supervision and a nonaccomplishment of slope management,” Bowman said successful an interrogation connected Fox Business Network's "Mornings with Maria". “We've conscionable hired an outer reappraisal to beryllium conducted connected each of the events that led to the nonaccomplishment of Silicon Valley Bank to guarantee that we don't repetition the aforesaid mistakes going forward,” she said.
The abrupt 2023 illness of SVB pursuing a accelerated outflow of slope depositors set disconnected broader turmoil successful the banking sector, which saw a handful of different banks besides collapse. The Fed antecedently conducted an interior reappraisal of what led up to its failure, led by Bowman's predecessor, Fed Governor Michael Barr. That reappraisal recovered the slope was insufficiently monitored pursuing accelerated maturation and examiners were dilatory to unit the bank to code its issues.
As the Fed's apical regulatory official, Bowman is pursuing a sweeping overhaul of its slope supervision, ushering successful caller leadership and aiming to trim 30% of its Washington staff. Bowman has said examiners request to refocus their vigor connected halfway financial risks astatine banks, arguing examiners person go overly focused connected process matters and non-core slope policies.
(Reporting by Michael S. Derby; Editing by Chizu Nomiyama)
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