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Fed says it must strengthen banking rules after SVB’s collapse

The Federal Reserve and the FDIC faulted managers at Silicon Valley Bank and Signature Bank — and also federal regulators — for the crisis last month

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Updated April 28, 2023 at 2:27 p.m. EDT|Published April 28, 2023 at 6:00 a.m. EDT
Silicon Valley Bank offices in Menlo Park, Calif., on March 13. (John Brecher for The Washington Post)
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In scathing reports, federal regulators on Friday outlined a number of disastrous decisions — including failures by the Federal Reserve and Federal Deposit Insurance Corporation — that ultimately led to last month’s banking crisis.

A much-anticipated 114-page report from the Fed on Silicon Valley Bank set the stage for a new, aggressive push to tighten up many of the rules that were eased by Congress in a bipartisan vote in 2018 and further loosened by the Fed in 2019. A separate report on Signature Bank’s collapse released later Friday by the FDIC blamed that bank’s management for ignoring risks — and also faulted the FDIC for not pushing the bank harder.