No it is not. It's because they invested heavily in governments bonds, right before the Fed started raising interest rates. Those low yield bonds have lost 1/4 of their value as interest rates have risen, which caused the bank to be short in their liquidity margins, as the tech market softened and loan demand increased. If not for the deregulation, they would have been required to report this shortfall to authorities.
The officers tried to sell a stock issue to increase capital, which alerted clients to the possible liquidity problems, where upon the CE0 called a zoom meeting and told his biggest clients that the bank was fine and everything would be fine, as long as nobody pulled their accounts. Which of course caused all of the banks biggest clients to pull their accounts and tell their friends to do the same.
The cherry on the top of this clusterfuck sundae is that the bank had huge clients with billions on deposit. Peter Thiele, a ultra right wing libertarian billionaire, pulled over $2 billion out of SVB. That's enough money to bring down some big banks, much less one the size of SVB.
Goldman Sachs is on the hook bigtime here. They participated in the stock capitalization. So we have Wall Street greed and self-dealing at play here too. Which is why it is necessary to regulate these assholes in the first place.
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