Regulators delayed SVB fixes amid fear of being wrong, report finds
An independent review for the Fed found regulators knew SVB had deadly vulnerabilities as early as March 2022 but chose inaction because of a culture of risk aversion and fear of being wrong, helping set the stage for Silicon Valley Bank’s 2023 collapse. The report rejects social-media fueled-run theories, noting most chatter appeared after the failure, and it calls for clearer decision rights and monthly supervisory reports to improve decisive action going forward.