[TonyLima]

Might want to check out the "too big to fail" doctrine.  Argument is that large banks act very much like the Fed with respect to small banks.  The big banks provide check clearing and transactions services, as well as holding what amounts to excess reserves.  SVB was the 16th largest bank in the U.S.  We now have a new lower limit on "too big."  My take on SVB here.

[TonyLima]

Might want to check out the "too big to fail" doctrine.  Argument is that large banks act very much like the Fed with respect to small banks.  The big banks provide check clearing and transactions services, as well as holding what amounts to excess reserves.  SVB was the 16th largest bank in the U.S.  We now have a new lower limit on "too big."  My take on SVB here.