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The Federal Reserve on Friday issued its analysis of last month’s failure of Silicon Valley Bank, identifying managerial and regulatory incompetence as well as “a shift in the stance of supervisory policy” following the passage of a 2018 law that eased regulations on midsize banks as the main culprits for SVB’s demise.
“SVB failed because of a textbook case of mismanagement by the bank,” wrote Michael Barr, the Fed’s vice chairman for supervision, in a Friday letter to his colleagues, noting that both senior leadership and…
