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Fed review finds SVB risks known by March 2022

By Drooid · Sep 18, 2026, 11:03 PM UTC · How we work

Summary

Bowman: Fed Ignored Risks

Federal Reserve Vice Chair Michelle Bowman said a review found supervisors knew SVB’s risks by March 2022 and did not act.
SVB collapsed in March 2023 with $209 billion assets, $175.4 billion deposits, and about 94% uninsured deposits.
SVB announced a $1.75 billion capital raise to cover $1.8 billion losses, triggering a massive withdrawal.
The review cited a long-standing risk-aversion culture and unclear authority among Fed supervisors as key blockers.

Summary

Trump: Calls Fed Hostile

U.S. President Donald Trump called Fed board “hostile” after Fed Chairman Kevin Warsh voted to raise rates.
Kevin Warsh joined a Federal Open Market Committee (FOMC) rate-hike vote, sparking criticism.
Board of Governors offered no comment beyond Bowman’s remarks, keeping its stance opaque.
Fed official Bowman briefed review’s initial findings in London, public briefing on Starling’s work.
Starling Advisory Group said it had not decided if report will be released.

History

Historical Context

Washington Mutual’s September 25 2008 seizure by the Office of Thrift Supervision—after a $16.7 billion run left its $307 billion in assets vulnerable—prompted the FDIC to sell the bank to JPMorgan Chase for $1.9 billion. The 2023 collapse of Silicon Valley Bank, despite regulators noting risks in March 2022, revived calls that led to the 2009 Dodd-Frank reforms and today’s congressional oversight hearings.

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Bowman: Fed Ignored Risks

Federal Reserve Vice Chair Michelle Bowman said a review found supervisors knew SVB’s risks by March 2022 and did not act.
SVB collapsed in March 2023 with $209 billion assets, $175.4 billion deposits, and about 94% uninsured deposits.
SVB announced a $1.75 billion capital raise to cover $1.8 billion losses, triggering a massive withdrawal.
The review cited a long-standing risk-aversion culture and unclear authority among Fed supervisors as key blockers.

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