Fed warned of Silicon Valley Bank's problems years before collapse.

The Federal Reserve was aware of risks to Silicon Valley Bank more than a year before its collapse, citing concerns about the bank's management as early as 2019. Despite several warnings, the bank did not rectify its weaknesses, and in a 2021 review, the Fed identified significant vulnerabilities in the bank's containment of risk. The bank's deposit base tripled in size during the pandemic-era tech boom, and it placed a sizable share of the funds into long-term Treasury bonds and mortgage bonds, which dropped in value when interest rates spiked. The bank failed to generate enough cash to meet the demand of depositors seeking funds, leading to its collapse. The Fed is currently conducting an internal review of how it supervised and regulated Silicon Valley Bank.