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What seems to have caught regulators and traders off-guard could be the broader market place and market impact in the SVB and Signature Lender failures. Neither bank was regarded systemically essential. And Congress even authorized a rollback of monetary regulations in 2018 on financial institutions of the measurement.
— There was quite a bit of dialogue about tension tests for financial institutions related in size to SVB. According to the Fed, SVB was not tested for the climbing amount state of affairs — which ultimately prompted the disaster.
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