because the clouds surrounding the second largest bank collapse in u.s. history, those clouds still have not lifted. maybe that s because the reasons for silicon valley banks failure are numerous there was the bank s decision to put billions into long-term government investments, something that is traditionally safe but the fed raised interest rates the investment value plummeted. when the bank clients panicked and demanded their money it caused a run on the bank then there was congress 2018 decision to roll back strict regulations established by the dodd/frank act senator elizabeth warren and other democrats have argued that rolling back those regulations was a primary cause of silicon valley bank s failure. and who had thought that those roll backs were a good idea at the time none other than silicon valley bank back in 2015 svb s ceo greg becker told the senate banking committee that the bank had a, quote, deep understanding of the markets, strong risk management