FILE PHOTO: The Silicon Valley Bank headquarters seen from the street in Santa Clara, California, U.S. March 13, 2023.
The bank’s parent company, SVB Financial Group, entered bankruptcy on March 17.
The Fed’s report concluded that SVB did not adequately hedge against risk, failed its own liquidity stress tests, and chased short-term profits at the expense of long-term stability.
Rather than address these risks, the bank changed how it measured them, the report found.
“I see this (Fed) report as being extraordinarily useful evidence to dangle in front of a judge or jury on class action lawsuits against accounting firms,” Cox said.