Name:   MartiniMan - Subject:   FDIC Insurance Date:   3/20/2023 4:15:01 PM

If this were the only issue with failing banks it might make a difference.  But when banks fail, small depositors and even the largest ones might be bailed out by the FDIC or the Feds but the shareholders and bondholders lose everything. 

What caused SVB to fail wasn't small depositors making a run on the bank.  It was caused by large, sophisticated depositors that saw the writing on the wall when SVB was forced to sell a portion of their bond portfolio at a loss.  While they maybe expected the Feds to eventually secure their deposits even if over whatever FDIC covered, they obviously weren't willing to take the risk or have their funds tied up for a period of time while the politics worked itself out.