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The Fed's Lazy Role in Banking
The Fed has a regulatory and supervisory role to play in banking as well, which it tends to not do these days. The regulators that were visiting SVB were probably mostly focused on their FDIC insured deposits. But I think that still sort of doesn't explain the dynamic that we saw play out in that situation. It is irresponsible for all those institutions to blame movements and interest rates on any of their failures.