Fed report on SVB collapse faults bank's managers -- and central bank regulators

[BumRushDaShow]

3. I don't know if any of them read the full report yet

The article did regurgitate this -

Senior Fed officials said changes to the Dodd-Frank reforms helped spur the crisis, though they also acknowledge that the SVB case also was a failure of supervision. A change approved in 2018 reduced the stringency of stress testing for banks with less than $250 billion, a category in which SVB fell.

“We need to develop a culture that empowers supervisors to act in the face of uncertainty,” Barr wrote. “In the case of SVB, supervisors delayed action to gather more evidence even as weaknesses were clear and growing. This meant that supervisors did not force SVB to fix its problems, even as those problems worsened.”

The summary is here - https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm

The report is here (PDF - it's 118 pages) - https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf

Per the CNBC article, GAO (Government Accountability Office) also issued a report on the same subject - https://www.gao.gov/blog/march-2023-bank-failures-risky-business-strategies-raise-questions-about-federal-oversight

GAO Summary - https://www.gao.gov/products/gao-23-106736

GAO full Preliminary Review report (PDF - 46 pages) - https://www.gao.gov/assets/gao-23-106736.pdf

(sorry to dump that on you )