The change in bank regs during the Trump years did not cause this – the Fed still had authority to apply the old regs to both SVB and Signature if they chose…they chose not to. And no, neither the Fed nor FDIC examiners were underfunded. The rating agencies were also asleep at the switch, Moodys had SVB at “A1” and Signature at “A2”. At least Fitch’s had Signature on a negative credit watch, but still rated it “BBB” investment grade.
The change in bank regs during the Trump years did not cause this – the Fed still had authority to apply the old regs to both SVB and Signature if they chose…they chose not to. And no, neither the Fed nor FDIC examiners were underfunded. The rating agencies were also asleep at the switch, Moodys had SVB at “A1” and Signature at “A2”. At least Fitch’s had Signature on a negative credit watch, but still rated it “BBB” investment grade.