Silicon Valley Bank collapses in largest bank failure since 2008
Silicon Valley Bank, a tech-adjacent lender, has collapsed in the largest bank failure since 2008, prompting intense scrutiny of the Federal Reserve's oversight. The bank had grown rapidly, and its depositors were heavily concentrated in the volatile technology industry. The vast majority of its deposits were uninsured by the federal government, leaving its customers exposed to a crisis. The Federal Reserve Bank of San Francisco, which oversaw Silicon Valley Bank, issued six citations, but the bank did not fix its vulnerabilities. The Fed is now investigating how its supervision of SVB could have been better.