Throughout history, there have been reforms to banking systems aimed at enhancing stability and diminishing systemic risk for financial institutions. Since the early 20th century, the Federal Reserve System has played a critical role in overseeing banks, implementing monetary policies, and upholding financial stability. However, many external and internal factors make the current banking system susceptible to bank failures and financial crises. This susceptibility was recently highlighted by Silicon Valley Bank (SVB), which confronted an array of financial challenges leading to its eventual closure. The Federal Reserve System’s Board of Governors released a report which assessed several aspects of the bank’s failure, particularly noting how the Fed’s regulatory mismanagement led to SVB’s outcome. This case study analyzes how the Fed did not fully appreciate the weaknesses and did not effectively remedy the financial vulnerabilities found within SVB. Following the failure of Silicon Valley Bank, Vice Chairman of the Federal Reserve, Michael S. Barr, noted, “As risks in the financial system continue to evolve, we need to continuously evaluate our supervisory and regulatory framework and be humble about our ability to assess and identify new and emerging risks.” Understanding the integral role of the Fed and internal factors in financial institutions provides valuable insights to new and emerging risks in the modern financial world.