US regulator cites ‘terrible’ risk management for SVB failure

WASHINGTON: A top US regulator told a Senate panel on Tuesday that Silicon Valley Bank did a “terrible” job of managing risk before its collapse, fending off criticism from lawmakers who blamed bank watchdogs for missing warning signs.

In the first congressional hearing into the sudden collapse of two US regional lenders and the ensuing chaos in markets, both Democratic and Republican lawmakers pressed the Federal Reserve’s top banking regulator on whether the central bank should have been more aggressive in its oversight of SVB.