US: Federal Reserve criticized for missing red flags before Silicon Valley bank collapse

The Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into the second-largest bank failure in US history.

AP news reported that critics pointed to many red flags surrounding the bank including its rapid growth since the pandemic, its unusually high level of uninsured deposits, and its many investments in long-term government bonds and mortgage-backed securities, which tumbled in value as interest rates rose.