Yes, but it also creates the obligation for regulators to add the safety of the system which did not happen here. The problem of regulators being unable to pro

Yes, but it also creates the obligation for regulators to add the safety of the system which did not happen here. The problem of regulators being unable to proactively stop a crisis (and then using that as part of an agenda to expand their powers further...before they fail again, and then say they could have stopped it with more power) hasn't gone away though. Btw, if you doubt this, I have already seen stories briefed into the media out of regulators saying that this happened because Congress passed a bill lowering the threshold for stress tests...ignoring the fact that SVIB was still being overseen by three distinct regulators, was still doing stress tests, and the problem concerned extremely liquid financial instruments that were reported in full in their totally public reporting.