The Fed crammed deposits down the throats of banks via QE
The Zero Reserve requirement by the Fed encouraged banks to speculate.
Not happy with free money for nothing, banks invested deposits into long duration treasuries and mortgage backed securities.
Regulators at the banks and Fed did no duration risk analysis
As the fed hiked rates, total bank losses hit $620 billion.

Instead of making $253 billion in annualized free money, banks collectively managed to lose $620 billion. Way to go!

It really is funny that the only bank that proposed just parking all the money at the fed and making that sweet free money was told "No". Lol.