Fed's Barr calls Silicon Valley Bank failure a 'textbook case of mismanagement'
Michael Barr, vice chair for supervision of the Board of Governors of the US Federal Reserve, during a Fed Listens event in Washington, D.C., on Friday, Sept. 23, 2022. Al Drago | Bloomberg | Getty Images The Federal Reserve's top banking regulator said Monday that the failure of the Silicon Valley Bank was due largely to mis manage ment, though he noted that regulation and oversight also need to step up. Fed Governor Michael Barr, the central bank's vice chair for supervision, insisted in prepared remarks to two congressional panels that regulators had noted issues with SVB's risk manage ment, but the bank was too slow to respond. "To begin, SVB's failure is a textbook case of mismanagement," he said. "The bank waited too long to address its problems, and ironically, the overdue actions it finally took to strengthen its balance sheet sparked the uninsured depositor run that led to the bank's failure." Barr is to address the Senate Banking C...