On March 10, 2023, the United States suffered the first major
bank failure since the 2008 economic collapse. It was the
nation's 16th largest bank, with over $200 billion in assets.
Specifically, the California Department of Financial Protection and
Innovation (DFPI) closed Silicon Valley Bank (SVB). Various warning
signs earlier that week, including a downgrade by Moody's of
SVB's long-term local currency bank deposit outlook, a sale of
SVB's bond portfolio at a loss of 1.8 billion, and subsequent
stock drops, culminated in a run by SVB's depositors and the
bank's ultimate failure.
This closure caused panic nationally among many banking
customers with large deposits. The FDIC insures deposits up to
$250,000 per depositor, leaving unprotected many businesses which
carry large balances. Depositors who held uninsured amounts started
withdrawing money from their accounts across the country, affecting
the stock market and various mid-size banks. On Sunday, March
