What a mess. The Fed has effectively made the United States into a socialist banana republic. As oligarchs will only trust the government, rather than private enterprises, to be their counterparty when banking.
Private enterprises are plenty responsible for this situation and similar past situations. Ironically (is it ironic I don't know), SVB got in trouble _because_ of the regulations. Time will tell if that dang govment got ahead of the situation early enough.
Yes they share in the blame as they got greedy, but the Fed enabled it. Why else did First Republic Bank have a loan-to-deposit ratio of 113%? They were emboldened by the Fed thru the use of RRPs and zero reserve requirements.
