Silicon Valley Bank reviews involvement in political power struggle, Trump camp seeks justification to replace Federal Reserve governor

With President Donald Trump seeking to strengthen his influence over the Federal Reserve, an external review into the 2023 Silicon Valley Bank collapse is turning into a high-risk political battle. According to sources familiar with the matter, some Trump administration officials and their allies have privately discussed whether this review could provide legal grounds for removing Federal Reserve Board Governor Michael Barr from the Federal Reserve Board. Due to the sensitivity of the discussions, these individuals prefer to remain anonymous. When Silicon Valley Bank collapsed due to a large concentration of uninsured deposits and poor interest rate risk management, Barr was serving as Vice Chairman responsible for supervision at the Federal Reserve, the highest position in the Federal Reserve's banking regulatory system.