California's bank regulator said that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems.
California's bank regulator said Monday that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems.
Silicon Valley Bank collapsed and failed on March 10 after its depositors rushed to withdraw tens of billions of dollars from the bank in a 21st century bank run. Aftershocks from the bank's failure have shaken the financial system, leading to the failure of Signature Bank and First Republic Bank, and putting several other banks under severe financial strain.
The DFPI said in its report that its staff was too slow to notice how quickly First Republic and Silicon Valley Bank expanded during the COVID-19 pandemic, taking on billions of dollars in deposits. Staffers also failed to realize the risks that come with banks getting too big too quickly, it said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
California bank regulator finds its own faults in Silicon Valley Bank's demiseCalifornia's bank regulator said Monday that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the...
Read more »
Silicon Valley Bank regulators failed to assess collapsed bank’s risks: reportSilicon Valley Bank regulators failed to identify and assess fast-expanding risks and hazards that doomed the tech-oriented financial firm.
Read more »
California regulator cites social media, digital banking as key factors in Silicon Valley Bank's failureThe California Department of Financial Protection and Innovation released its report on the events that led to the March 10 failure of Silicon Valley Bank — but the remedies aren't fully clear.
Read more »
SiliCon, Silicon Valley’s pop culture and maker fest, canceled for 2023The festival of all things science and geek had been scheduled for October in Santa Clara.
Read more »
Report: Regulators saw problems, but didn’t make Silicon Valley Bank fix them fast enoughA report from California’s department devoted to business oversight says state and federal regulators saw reasons for concern over Silicon Valley Bank’s financial practices, but didn’t force changes soon enough. by GraceGedye
Read more »
Theranos and Silicon Valley's 'Fake It Till You Make It' Culture“The Theranos story is an important lesson for Silicon Valley. Innovators who seek to revolutionize and disrupt an industry must tell investors the truth about what their technology can do today, not just what they hope it might do someday.” (From 2018)
Read more »