Rapid Growth and Risk Management Failures: SVB’s rapid expansion, with assets increasing from $71 billion in 2019 to $211 billion in 2022, outpaced its risk management capabilities, leading to significant vulnerabilities. Interest Rate Risk Exposure: The bank’s decision to remove interest rate hedges in 2022, combined with a high concentration of long-term securities, left it exposed to rising interest rates, resulting in substantial unrealized losses. Supervisory Oversight Shortcomings: Regulatory bodies, including the Federal Reserve, did not fully appreciate the extent of SVB’s vulnerabilities as it grew in size and complexity, delaying necessary supervisory actions. Significant Deposit Outflows Leading to Collapse: Ineffective communication of its plan to raise capital, coupled with other market events, led to significant deposit outflows, culminating in SVB’s closure by the California Department of Financial Protection and Innovation on March 10, 2023.