Hilarious own goal on this one.
I think this is a textbook slam-dunk by the government? They stepped in when the situation was _bad_, but not _catastrophic_ yet (mmmmaybe arguable), took over, and no depositors got hurt.
Is there an argument that this could've gone better, apart from "no banks ever fail"?
The specific regulator is going to retire. "Abbasi and Mary Daly, president of the San Francisco Fed, came under scrutiny after a post-mortem report undertaken by the Federal Reserve found problems with how SVB was supervised." https://www.msn.com/en-us/money/markets/key-san-francisco-fe...
And through regulatory capture the CEO of SVB was on the board of directors of the regulator!
https://www.reuters.com/markets/us/ceo-failed-silicon-valley...
Voting isn't enough because even elected officials aren't allowed to fire these people.
Another example of regulatory capture leading to inadequate oversight is FDA, which has revolving door with drug companies. https://www.mdlinx.com/article/10-dangerous-drugs-recalled-b...
If I were Boeing, I would hire the fired bureaucrat with a lavish comp package and make sure he's at every meeting, conference, get-together, etc. looking well-tanned and happy.
That makes negotiating with the fired guy's replacement much much easier.
We don't need to have religious-like faith in government because we can vote for people who will do what we want them to and we can vote out the people who refuse to do their job. It doesn't happen without the people getting involved and holding their government accountable though. You don't have to pray when you can vote.
Without regulation you could only ever have religious-like faith in private corporations because they have zero incentive to act benevolently and you have zero power to replace a CEO who is acting against the interests of the public. You have no vote, so prayer is all you have left.