Is the Federal Reserve Failing in Bank Oversight?

The recent failures of three US banks have raised questions about the Federal Reserve's ability to supervise and regulate banks. Critics argue that the Fed is too chummy with the banks it regulates, with executives of the institutions sitting on their boards. The collapse of Silvergate Bank and Silicon Valley Bank, both overseen by the Federal Reserve Bank of San Francisco, has highlighted the regulator's failure to correct or rein in rising risks in both institutions' operations. The Fed also seemed to disregard a warning it received last summer about risks of bank runs posed by unfettered crypto operations.