Fed official says banking rules are under review in the wake of SVB failure

Michael Barr, vice chairman for supervision of the Fed’s Board of Governors, said managers of Silicon Valley Bank were deficient. Barr said the Fed is considering whether stricter regulations are needed on liquidity — the ability of a bank to access cash — and capital requirements, which govern the level of funds a bank needs to hold. (AP Photos)

WASHINGTON — The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems.

The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate Banking Committee hearing that the Fed is considering whether stronger bank rules are needed to prevent a similar failure in the future.