As the Federal Reserve (Fed) readies its internal review of its actions leading up to the Silicon Valley Bank (SVB) collapse, today, a coalition of organizations sent a letter to Congress strongly urging them to apply the necessary scrutiny of a comprehensive external audit of the Fed’s role in SVB’s implosion. We believe the collapse of SVB was a failure of both the bank’s risk management and the Fed’s ability to properly supervise and enforce current regulations. This failure of supervision is a telltale sign that hastily drawn additional regulations on regional banks are unwarranted and will not stop future bank failures.

The letter is available here.