Senate hearing reveals failures and blame in Silicon Valley Bank's collapse.

Regulators and bank executives testified before the Senate Banking Committee about the collapse of Silicon Valley Bank, which more than tripled in size in the last three years but failed to keep pace with financial controls. Federal regulators had repeatedly warned the bank's managers about the risks it was facing, but the bank recognized the problem only belatedly. The bank's collapse led to a rapid run on the bank, and the FDIC has guaranteed all deposits at both Silicon Valley Bank and Signature Bank, which will cost the deposit insurance fund $20 billion and $2.5 billion, respectively. Bank executives' role came under scrutiny, and President Biden urged Congress to pass legislation to increase penalties on bank executives when mismanagement leads to bank failures.