{
  "id": 8269921,
  "title": "Fed sat on Silicon Valley Bank flaws because regulators feared being wrong, report finds",
  "url": "https://urgent.news/2026/09/18/fed-sat-on-silicon-valley-bank-flaws-because-regulators-feared-being",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T15:43:31.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/economy/policy/article/fed-sat-on-silicon-valley-bank-flaws-because-regulators-feared-being-wrong-report-finds-154331423.html"
  },
  "original_language": "en",
  "account": "An independent report, commissioned by Michelle Bowman, the Federal Reserve's vice chair of supervision, has found that Silicon Valley Bank's failure was not fueled by social media but rather by the bank's own vulnerabilities. Despite spotting these issues a year before the bank's collapse, regulators chose to do nothing due to a culture of risk aversion and fear of making a mistake. Silicon Valley Bank, primarily serving tech startups, venture capital firms, and healthcare companies, had amassed a significant amount of cash, which it used to buy long-term Treasury bonds and mortgage-backed securities at near-zero interest rates. When the Federal Reserve aggressively raised interest rates, the bank suffered massive losses on its bond holdings. Depositors began withdrawing funds to cover their own expenses, forcing the bank to sell its bond portfolio at a loss and raise capital. This prompted a run on the bank, which ultimately collapsed on March 10, 2023. The report found that supervisory staff should have known of these vulnerabilities as early as March 2022 but failed to take action due to their reluctance to make imperfect decisions. In response, Bowman has vowed to address the culture problem and ensure that supervisors act promptly and decisively when identifying vulnerabilities.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Financial Times",
        "title": "Fed report finds it was ‘too timid’ in tackling risks at Silicon Valley Bank",
        "url": "https://urgent.news/2026/09/18/fed-report-finds-it-was-too-timid-in-tackling-risks-at-silicon-valley",
        "published": "2026-09-18T15:03:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}