Which was the second largest bank failure in US history. If we have 5 more of these in quick succession then it's pretty safe to say that an insurance agency isn't going to be able to save the economy. You're going to need an act of Congress and a massive bailout, and perhaps even that won't be enough.

For some perspective there was an average of one bank failure every two days in 1990. We were fine back then, we’ll be fine now.

I'm pretty sure they all had been just small banks. SVG was really big compared to almost every other bank who failed the last 20 years. As banks get bigger and bigger, like CS and UBS is just UBS now. People say the new UBS is now to big to bail for Switzerland and not to just big to fail anymore.

FDIC's reserves are less than 2% of insured deposits and far less than 1% of GDP. Perhaps the banking system is broken if 5x more spooked VCs pull their money out in similarly correlated banks means everything goes up in flames.