Washington regulators plan to release postmortems of their oversight of Silicon Valley Bank and Signature Bank before they abruptly collapsed last month, potentially highlighting missteps by both banks’ management and their federal supervisors, the Wall Street Journal reported. The Federal Reserve is expected to release a report Friday morning digging into its handling of SVB, the culmination of a review led by Michael Barr, the Fed’s vice chair for supervision. A second report, expected later in the day from the Federal Deposit Insurance Corp., will analyze that agency’s oversight of Signature. Both reports are expected to include recommendations for toughening regulation of regional banks similar in size to SVB and Signature, potentially through more robust liquidity and capital rules and closer supervision. In response to the failures, officials have said they are weighing tougher rules for regional banks with at least $100 billion in assets. The look-backs come as another firm, San Francisco-based First Republic Bank, faces significant challenges. The bank has lost 95% of its value since early March, and there are no easy options for stemming the crisis.
