Banks' business is very simple, borrow from depositor and lend to someone who needs the money.Using short term deposit to find long term asset, that's burying a time bomb, borrowers default or exodus of deposits will put the banks in trouble. Capital management team as well as the value ofthe assets are critically important to ensuring insolvency of a bank.
Bank Stocks Alert: 190 Banks Could Follow SVB Into Failure
Does FED know a simple logic? A human being suddenly lost lots of blood, he will be in shock and die quickly without proper treatment, FED has no solution. This person surely die.