There are 3 (and a half) reasons for the Silicon Valley Bank failure...

There are 3 (and a half) reasons for the Silicon Valley Bank failure. Change any one of the 3 and everything would have been ok.

1) Large deposits were not FDIC insured. If they had been, depositors would NOT have panicked. Congress MUST extend FDIC insurance (which is paid for by a fee on banks, and NOT by taxpayers) to cover ALL deposits in regulated banks.

2) The Fed changed interest rates TOO FAST.  Banks can live with high rates or low rates, but NOT with rapidly changing rates.

3) SVB management erred by buying longer-maturity treasury bonds.

3.5) Ending Dodd-Frank reduced regulatory oversight of banks in the $50B-$250B range. Even with DF, regulators might or might not have disallowed SVB's purchase of US bonds. Also, DF would do nothing to protect depositors in small banks.

"Most accidents do not have a single cause: there are usually multiple things that went wrong, multiple events that, had any one of them not occurred, would have prevented the accident." ― Donald A. Norman, The Design of Everyday Things