Silicon Valley Bank.

This bank had $200 billion plus in deposits, mostly from companies.  It had companies that deposited $20 billion apiece.  Sooner of later any half way competent company can find far more profitable uses for $20 billion, more profitable than leaving it in the bank.  When such a company withdraws $20 billion to do something it’s gonna shake the financial stability of the bank, even if it does have another $180 billion in the til. 

   I believe the thinking in bankers’ minds assumes that the depositors’ money is very small compared to the banks total assets.  And that they have a lot of depositors but they don’t all withdraw their deposits at the same time. 

  I’m thinking that Silicon Valley ignored all this and did not worry when big depositors made big withdrawals.

Biden promised to make all the depositors whole without laying the burden on taxpayers.  He is gonna have FDIC pay off everybody.  Of course FDIC gets its money from taxpayers, and $20 billion depositors take a lot of paying off.