Further reporting seems to make it more complicated: apparently, CA Feds were warning SVB for 2 years already, but nothing was changed, and Feds followed up at glacial speed.
This looks like a systemic problem in everything related to risk management: people who are responsible receive their salaries and hope that nothing bad will really happen. If something bad happens – rarely – they just lose their jobs. Otherwise, they’ll get paid extra for many years… Same as people in charge of institutions who invested with Madoff. And probably many others who were lucky not to be exposed.