[pickovven]

SVB is actually an inverse example of that hypotheses.

The biggest depositors added pressure on the bank to be more risky.

[rcme]

In what way did the depositors add pressure for the bank to be more risky? Naively, it seems like there would be zero incentive for a depositor to do that unless they were trying to chase a measly yield on deposits.

[Red_Leaves_Flyy]

Which proves the need for regulation.

[cmurf]

Or that the depositors should have lost money, with the ensuing ripple effects: unpaid workers, state fines for violating wage payment laws, bankruptcies, lawsuits, unpaid vendors and contractors and all their downstreams, etc.

i.e. carnage, a big bloody nose, but not an extinction level event.

Maybe the depositors deserved a bloody nose. But do their employees, vendors, and contractors?