Federal Reserve Governor Michelle Bowman recently defended the bank regulatory landscape, stating that the recent bank failures of Signature Bank and Silicon Valley Bank (SVB) were not an indictment of the system, but conceded that changes may be necessary if gaps in the bank supervision and regulation regime are identified. The Fed is currently reviewing its oversight of SVB and results of the review are expected to be made public by May 1. Critics have been quick to point fingers at various parties, including Congress and Trump, bank regulators, executive mismanagement, and deposit influencers. However, until all facts are known, banks of all sizes can expect increased regulatory scrutiny. Bank management should begin preparing proactively for the increased scrutiny. Some experts have criticized the lack of coordination between the monetary and bank supervision and regulation functions of the Federal Reserve Board, while others are questioning why the board did not anticipate the negative effects of rapid interest rate increases on bank securities portfolios, deposit migration away from banks to money market funds, and resulting liquidity strains.