Despite all of the supposed safeguards to prevent bank failures, banks still fail. Perhaps the so-called safeguards are causing much of the trouble.

Original Article: "Why Do Banks Still Fail?"
This Audio Mises Wire is generously sponsored by Christopher Condon. 

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As we know, Silicon Valley Bank (SVB) was taken over by the Feds after a bank run. Despite assurances from SVB that they were sound, they obviously failed to understand their precarious situation. Based on SVB’s balance sheet, it was technically insolvent. The regulators shut it down and pondered what to do next.
A bank run? How could this happen in modern financial America? Doesn’t the government (the Fed and the Federal Deposit Insurance Corporation [FDIC] in this case) regulate and monitor banks and make them safe? Wasn’t post–Great Recession legislation supposed to prevent this? Apparently not.
According to the New York Times, since 2021 the Fed has issued six warnings to SVB about liquidity issues. The warnings related to the bank’s ability to pay off