Report Blames Fed Regulators for SVB Collapse — SkimNews
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- A new report on the SVB collapse pins blame on the Fed's own regulators, according to a Fed official cited by WSJ, with CNN characterizing it as an "epic failure" by Fed staff.
- The report finds the Fed sat on Silicon Valley Bank's flaws because regulators feared being wrong, identifying a "culture of risk aversion" that contributed to the bank's failure.
Why it matters: The report represents an internal acknowledgment — disclosed by a Fed official — that regulatory timidity, not ignorance, allowed SVB's collapse. It shifts accountability squarely onto Fed supervisors rather than the bank's management or broader market conditions.
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