The central bank’s supervisors “did not fully appreciate the extent of the vulnerabilities” at Silicon Valley Bank as it grew and when they identified them, they failed to take the necessary steps to help it fix those problems quickly, according to a review. (The Logic)

Talking point: Vice-chair for supervision Michael Barr, who led the review, said the reserve’s supervision and regulation must be strengthened. He wants to “improve the speed, force and agility of supervision” and “raise the baseline for resilience,” which includes re-evaluating rules for banks with US$100 billion or more in assets. Fed chair Jerome Powell said he agrees with the recommendations. Barr, who started in his role in July 2022, helped create stronger bank regulations following the 2008 crisis.