
US regulators are facing questions over whether they missed signs of mounting problems at Silicon Valley Bank, the tech lender whose implosion last week fomented fears of contagion across the banking sector.
As the government fought to contain the fallout from the failure of SVB — which on Friday was taken over by the Federal Deposit Insurance Corporation after customers withdrew deposits en masse — attention turned to the regulators who oversee the financial system. Many questioned how the country’s 16th-biggest bank was allowed to become so vulnerable. Its collapse was quickly followed by the closure of cryptocurrency sector lender Signature Bank on Sunday.