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The bank officers certainly knew. Here's the head and subhead of an NYT article in today's edition. SVB was under Fed scrutiny, apparently just not very effective scrutiny:
Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems
The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.
The 2018 rollback of the part of Dobb-Frank Act on regulatory examination and stress test contributed to this failure. This supposed to US banks more competitive with other banks in the world. Now we realize that is a mistake. Will any of the executives go to jail? Will any of their bonus being claw back?
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