Bowman says Fed knew of SVB risks nine months before failure, faults Basel and FSB reports
Fed Vice Chair for Supervision Michelle Bowman uses a Bangkok address to preview preliminary findings of an independent SVB review she commissioned. She argues supervisors held the key risk information months ahead of the failure but lacked clear accountability to act, and she takes the unusual step of criticising the BCBS and FSB for building post-crisis work on incomplete earlier reports.
- Preliminary review finds Fed supervisors knew of SVB's interest rate and liquidity risk at least nine months before FDIC receivership but did not act.
- SVB had 54 matters requiring attention or immediate attention between 2019 and failure, none requiring remediation of core financial risks.
- Bowman says the BCBS and FSB took language nearly verbatim from earlier flawed US reports rather than independently verifying findings.