An external review of the 2023 Silicon Valley bank collapse is turning into a high-risk political battle as US President Donald Trump seeks to strengthen his influence on the Federal Reserve. According to people familiar with the matter, some Trump administration officials and their allies have privately discussed whether this review report can provide a legal basis for expelling Federal Reserve Governor Michael Barr from the Federal Reserve Board of Governors. Due to the sensitive nature of the discussions, these people declined to be named. When Silicon Valley Bank went out of business due to the concentration of large amounts of uninvested funds and crowding caused by poor interest rate risk management, Barr was the Federal Reserve's vice chairman responsible for regulatory affairs at the time. This was the highest position in the Federal Reserve's banking supervision system.

An external review of the 2023 Silicon Valley bank collapse is turning into a high-risk political battle as US President Donald Trump seeks to strengthen his influence on the Federal Reserve. According to people familiar with the matter, some Trump administration officials and their allies have privately discussed whether this review report can provide a legal basis for expelling Federal Reserve Governor Michael Barr from the Federal Reserve Board of Governors. Due to the sensitive nature of the discussions, these people declined to be named. When Silicon Valley Bank went out of business due to the concentration of large amounts of uninvested funds and crowding caused by poor interest rate risk management, Barr was the Federal Reserve's vice chairman responsible for regulatory affairs at the time. This was the highest position in the Federal Reserve's banking supervision system.