This is a 100% fed driven problem. You have very low interest rates and you flood the economy with a lot of cash. The banks get higher deposits and they need to

This is a 100% fed driven problem. You have very low interest rates and you flood the economy with a lot of cash. The banks get higher deposits and they need to manage all this cash, what do you do? Long term “safe bonds” at low interest rates get destroyed when interest rates go up, so does the risky stock market and real estate (residential and commercial). Where do you park the money? Hold cash? You can lend it out, but again we’re talking about an all time low interest rate environment flush with cash, where the only demand for credit is from risky lenders. There was way more money with the banks than there was a need for credit. How else could the banks have mitigated the risk? I’m definitely not making excuses for poor decision making by some of these banks, but still. Even if you want to play it safe and do things by the regulation, how do you do it?