I am posting a link to a Bankless podcast that aired March 13 featuring Ram Ahluwalia, the CEO of Lumida Wealth Management. The discussion is the most comprehensive critique that I've heard or read about what happened at Silicon Valley Bank and the its failure's implications for the US Banking system.
Ram makes a great point that average depositors are not going to pull their money out of banks because they believe the banks to be risky, or potentially insolvent, they are going to start moving their money out of banks and products such as money market accounts to receive a higher return on their money.
This is due, in large part, to the FEDs interest rate hikes and the inability of banks to raise interest rates on deposits because they are holding long positions on US Treasury Bonds. Ram also discusses why no other bank wants to buy SVB. If you are a finance nerd like me, you'll love the discussion and also get a taste of how distributed ledger transactions, aka block chain, may play a role in preventing future bank collapses.