Silicon Valley Bank collapsed in 2023 due to long-term debt assets and uninsured deposits, creating simultaneous interest rate and liquidity risk. The first regulatory report by Michael Barr, a Biden appointee, blamed Trump-era Dodd-Frank deregulation. A second report commissioned by Trump appointee Michelle Bowman and written by the Starling Advisory Group disputed this link. Academic Jill Cetina highlighted that the Fed had no hard quantitative guardrails for interest rate risk, noting regulators "need some bright lines." The article argues deregulation's role remains ambiguous, turning on culture rather than rules.

The piece notes higher oil prices and strong US data pushed yields up, while the OECD urged governments to contain spending. The author predicts the Starling report will not resolve the ambiguity around SVB's failure. The core question remains how a bank whose problems fit two bullet points escaped regulatory intervention.

Bonds faced pressure as yields rose. The OECD called for spending containment. The SVB failure files continue with new reports emerging.