The rapid collapse of four regional banks that began last March shocked regulators and investors alike.

The banks had courted high-net-worth clients working in speculative tech and crypto startups in Silicon Valley, while also tying up a large portion of the banks’ assets in Treasury securities. When interest rates shot up, their customers needed cash at the same time that the banks’ assets became less valuable.

Since the Federal Deposit Insurance Corporation (FDIC) insures only up $250,000, the banks’ wealthier customers panicked and demanded all of their money immediately. A succession of bank runs wiped out the four banks, details ⇒

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