"Textbook Case Of Mismanagement": Top Official On Silicon Valley Bank
NDTV
"SVB failed because the bank's management did not effectively manage its interest rate and liquidity risk," the Fed's vice chair for supervision Michael Barr said.
The collapse of Silicon Valley Bank (SVB) was a "textbook case of mismanagement" which requires tougher banking regulation, according to prepared remarks by a top Federal Reserve official.
"SVB failed because the bank's management did not effectively manage its interest rate and liquidity risk," the Fed's vice chair for supervision Michael Barr said in remarks released ahead of a Senate hearing Tuesday.
He added that its failure "demands a thorough review of what happened, including the Federal Reserve's oversight of the bank."
Silicon Valley collapsed on March 10 after taking on excessive interest-rate risk, leaving it exposed when the Fed began hiking rates to tackle rising inflation.
