A DISTURBING LACK OF ACCOUNTABILITY:
Let me be clear, the primary responsibility for the failure of SVB lies at the feet of the company’s management and board of directors. However, the company operated within a heavily regulated system, and a self-examination by the Federal Reserve revealed back in May that the enforcement division of the San Francisco Fed identified issues at SVB, but lacked any urgency in correcting them. Here we are three months later, and no Fed employee has been fired, the San Francisco head of supervision is allowed to simply retire with full benefits, and the San Francisco Fed president issues this statement pointing fingers at others.
Supervision is a system-wide activity, but different parts of the system have different roles and responsibilities. While many of us do not own the decision—those rest solely with the Board of Governors or Michael Barr . . . we all own the outcomes. And so, when the outcomes aren’t what we want them to be, we all work collectively to make them better going forward.