Davis Polk Financial Institutions chair Randy Guynn shared with American Banker his thoughts on the Federal Reserve’s report on the failure of Silicon Valley Bank.

Discussing the wide-ranging matters requiring attention and matters requiring immediate attention – known as MRAs and MRIAs – that were raised with Silicon Valley Bank and disclosed in supervisory documents released alongside the Fed’s report, Randy said, “Where’s the specific MRA about SVB’s excessive exposure to uninsured deposits? Where’s the MRA about SVB’s specific interest rate risk? They had 31 supervisory findings, but they couldn’t have raised those issues in the 15 months after Quarles left or eight months after Barr got on the job? Unless there’s more that hasn’t been disclosed, it just doesn’t make any sense.”

“For Fed supervision, cultural shortcomings are nothing new,” American Banker (May 8, 2023) (subscription required)

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