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A new report on the Silicon Valley Bank collapse has concluded that a "culture of risk aversion" inside banking regulation led to the mishandling of identified weaknesses at the tech-heavy lender.
The White House responded to the review by attacking a Federal Reserve official. The report's framing is specific. Regulators, it finds, were not uninformed about Silicon Valley Bank's vulnerabilities.
They had the information, and the culture inside the supervisory apparatus shaped what they did with it.
The regulatory finding The phrase "culture of risk aversion" carries weight in the report's accounting of what went wrong. It shifts the locus of failure from individual decisions to institutional temperament.
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