The Federal Reserve was too timid in tackling problems at Silicon Valley Bank and misdiagnosed why the lender collapsed, according to a new report into the 2023 crisis. Vice-chair for supervision Michelle Bowman commissioned the review, stating the findings require meaningful reform. The report by Starling Advisory Group contradicts earlier conclusions by Michael Barr, the Fed's former banking supervisor.

Bowman dismissed claims that earlier regulatory easing caused the failure, noting the review found no evidence social media accelerated the bank run. Fed officials failed to address vulnerabilities due to a.