Imprudent bankers weren’t the only ones who believed the financial waves would never recede.

Review and Outlook: While politicians, the Fed and Treasury will try to blame bankers for the latest financial mess, they are as much, if not more, culpable. Images: Zuma Press/AFP/Getty Images Composite: Mark Kelly

In financial markets, the tide has been going out for a while and is still receding. To paraphrase Warren Buffett, we are starting to get a good look at who has been swimming naked. It isn’t pretty.

Silicon Valley Bank was suddenly and brutally exposed last week halfway up the beach, clutching to its nether regions the shrinking hand towel of a capital raise that was quickly snatched away by panicking depositors. After futile CPR efforts, the bank eventually collapsed into the arms of the regulatory lifeguards.

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