Silicon Valley Bank's issues were hiding in plain sight, and its collapse damages the Fed's reputation as a regulator, DataTrek says

• If SVB's collapse isn't a one-off, the Fed's reputation is going to take a hit, DataTrek said. 
• The Fed's "paradigm for assessing systematic risk needs a rethink," according to a Monday note.
• But Congress in 2018 exempted regional banks from tougher regulatory oversight.

Silicon Valley Bank's problem's shouldn't have come as a surprise to the Federal Reserve, which faces damage to its reputation as a regulator, according to DataTrek Research. 

SVB's stunning collapse last week, leading to a federal rescue of its depositors on Sunday, came after losses on the sale of a bond portfolio triggered a bank run.