Fed was aware of Silicon Valley Bank problems more than a year before its collapse

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Fed was aware of Silicon Valley Bank problems more than a year before its collapse
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The Federal Reserve was aware of risks to Silicon Valley Bank more than a year before its collapse, ABC News confirmed.

report that the Fed cited risks to Silicon Valley Bank’s management as early as 2019 -- four years before the bank’s collapse.In a 2021 review, the Fed identified significant vulnerabilities in the bank’s containment of risk, but the bank did not rectify the weaknesses.

Last fall, employees at the Federal Reserve of San Francisco met with top officials at the bank to address the lack of accessible cash and the potential risks posed by rising interest rates. Former Silicon Valley Bank CEO Greg Becker sat on the board of directors at the Federal Reserve Bank of San Francisco from January 2019 until the day of the bank’s collapse on March 10.

The Fed’s warnings proved prescient earlier this month, when the collapse of Silicon Valley Bank marked the second-biggest bankThe bank's deposit base, which draws heavily from startup firms in the technology industry, tripled in size during the pandemic-era tech boom between 2020 and 2022.

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