Outside the Box: SVB’s collapse exposes the Fed’s massive failure to see the bank’s warning signs

The failure of Silicon Valley Bank (SVB) SIVB is a failure of federal supervision as well as regulation.

The two terms are used interchangeably, but are different concepts: regulation is about creating rules, supervision enforces them.  Initial reactions to SVB’s failure focused on debating whether the Trump-era deregulation caused the failure, but this ignores the fundamental question of whether the rules that existed were being properly enforced.

The…