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The Fed's report on Silicon Valley Bank's failure is out, and it's a ripper, with Vice Chair Barr leading by calling it "a textbook case of mismanagement by the bank." 
The full report is available here: federalreserve.gov/publications/f…
All power to Fed Vice Chair Michael Barr for getting right at the heart of the issue, and not pulling his punches.
All power to Fed Vice Chair Michael Barr for getting right at the heart of the issue, and not pulling his punches.
Barr echoes the claims that I made #onhere that Silicon Valley Bank really is an outlier "because of the extent of its highly concentrated business model, interest rate risk, and high level of uninsured deposits."
But outliers and unusual edge cases happen (especially when there are billions of dollars on the line), so he correctly points out that this episode reveals important problems in the current regulatory framework.
The Fed is also explicit in noting that the Trump-era weakening of bank regulation "impeded effective supervision" and "is a key reason why Silicon Valley Bank was allowed to get itself into such a mess.
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