House Oversight and Accountability Committee leaders today wrote to San Francisco Federal Reserve Bank President and CEO Mary Daly requesting documents and information related to the oversight of Silicon Valley Bank, noting that “SF Fed appears to have failed to adequately supervise SVB and respond to the bank’s mismanagement.”
The lawmakers requested that the Fed provide, by May 11, all examination and audit reports related to SVB, along with information about the examination teams tasked with overseeing SVB and communications regarding the supervision of the bank.
“Public documents show that SVB’s assets and liabilities were not appropriately diversified to match the bank’s growth, and regulators filing MRAs and MRIAs may have been responding to knowledge that, at the end of 2022, almost 96% of deposits held at SVB were uninsured, making the bank susceptible to a run,” they noted. “While the signs of significant and alarming risk were clear, no regulator used more severe tools, such as fines or consent orders, to require action from SVB.”
