Fifteen years after a financial meltdown sent the country into a recession, policymakers had vast power to probe a failing firm — yet missed signs of a crisis.
The new scrutiny focuses on the Federal Reserve, its regional bank in San Francisco, the state of California and lawmakers on Capitol Hill, after Washington moved in recent years to dial back oversight of important regional institutions. Roughly a decade and a half after the 2008 financial crisis sent the country into a deep recession, these government officials possessed vast power to probe SVB before it failed — yet they all seemed to miss key opportunities to prevent the meltdown.
Now, financial experts, lawmakers and former government officials have expressed alarm about the potential lack of rigorous oversight. Some have pointed the finger at the Fed, the nation’s supervisory central bank, arguing it should have scrutinized the books of SVB, which grew at a meteoric pace during the pandemic as the tech industry boomed.
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