The Federal Reserve (Fed), the central banking system of the U.S., started probing the reasons that Silicon Valley Bank (SVB) collapsed.
The internal review will investigate how the bank was supervised and regulated.
Fed Vice Chair for Supervision Michael Barr will lead the investigation.
- The Fed will publicly release the review findings by May 1.
- Fed Chair Jerome Powell said the collapse requires a comprehensive, transparent, and quick review by his agency.
- California-based SVB was shut down by the state's Department of Financial Protection and Innovation on March 10.
- The bank was the 16th largest bank in the U.S. and provided banking services to several crypto and tech startups.
- SVB's closure became one of the three bank collapses within a week, alongside Silvergate Bank and Signature Bank.
- The collapse is the biggest U.S. bank failure since Washington Mutual in 2008.
The Fed also recently announced a $25B funding program to support banks and other depository firms by offering them loans for up to one year following the consecutive collapses.
