‘Textbook case of mismanagement’: Regs point blame at SVB for collapse

Banking regulators defended their supervisory actions and pledged to find answers as to what went wrong when discussing the factors leading to the failures of Silicon Valley Bank (SVB) and Signature Bank before lawmakers Tuesday.

At a hearing before the Senate Committee on Banking, Housing, and Urban Affairs, Democrats like committee chairman Sherrod Brown (D-Ohio) said relaxed banking regulations played a significant role in the crisis.

“The officials sitting before us today know that their predecessors rolled back protections like capital and liquidity standards, stress tests, brokered deposit limits, and even basic supervision. They greenlighted these banks to grow too big, too fast,” Brown said in his statement.