WASHINGTON: US regulators charged with overseeing Silicon Valley Bank before its collapse this month said Wednesday that they shared in the blame for its rapid failure, after it took excessive interest-rate risk.

“I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed,” the Federal Reserve’s vice chair for supervision Michael Barr told the House Financial Services Committee.

“I think we as the regulators of the institution had responsibility,” Federal Deposit Insurance Corporation chair Martin Gruenberg said during the hearing, while also blaming SVB’s management for its failure.

Published in Dawn, March 30th, 2023