Home » World News » Federal Reserve sounded alarm about Silicon Valley Bank's risk management in 2019: report
Federal Reserve sounded alarm about Silicon Valley Bank's risk management in 2019: report
Was Silicon Valley Bank too woke to fail?
Strategic Wealth Partners CEO Mark Tepper and Fox News contributor Richard Fowler weigh in on the ‘meltdown’ leading up to the collapse of Silicon Valley Bank and Signature Bank on ‘WSJ at Large.’
The Federal Reserve began sounding the alarm about Silicon Valley Bank's (SVB's) risk management arm starting at least four years ago in 2019, according to a report.
In January 2019, the Fed issued a warning known as a "Matter Requiring Attention," a citation a step-down from an enforcement action, about SVB's risk-management systems, The Wall Street Journal reported, citing documents from a presentation circulated last year to employees of SVB’s venture-capital arm.
The presentation reportedly said the Fed again warned SVB in 2020 that its system to control risk did not meet the expectations for a large financial institution, or a bank holding company with more than $100 billion in assets. The bank at that time was in a period of rapid growth as deposits flooded in at the early onset of the COVID-19 pandemic.
According to the Journal, the presentation notes that SVB's average level of interest-earning assets grew 76% in the first quarter of 2021, compared with the same period one year earlier.
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