[chrisk]

The Fed flagged SVBs risk management profile back in 2019, and increased their, shall we say, collective expressions of alarm in 2020, 2021 and July, 2022. The most interesting part to me is that SVB was allowed to triple in size in less than three years after the alarms were raised.

Fed Raised Concerns About SVB’s Risk Management in 2019

Mick - how was SVB allowed to triple in size? How does the FED toss out an anchor to slow down SVB's growth? What options are available to the FED when it flags a banks risk management profile?

The Fed has capped Wells Fargo asset size at $1.93 trillion since 2018 (via a cease and desist order signed by all of the Board of Directors) so that is a tool that Fed has at its disposal. (But it would have to articulate its concerns).

[chrisk]

The Fed flagged SVBs risk management profile back in 2019, and increased their, shall we say, collective expressions of alarm in 2020, 2021 and July, 2022. The most interesting part to me is that SVB was allowed to triple in size in less than three years after the alarms were raised.

Fed Raised Concerns About SVB’s Risk Management in 2019

Mick - how was SVB allowed to triple in size? How does the FED toss out an anchor to slow down SVB's growth? What options are available to the FED when it flags a banks risk management profile?

The Fed has capped Wells Fargo asset size at $1.93 trillion since 2018 (via a cease and desist order signed by all of the Board of Directors) so that is a tool that Fed has at its disposal. (But it would have to articulate its concerns).