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The FDIC calls them failed banks by definition. If they step in, you failed. They have a failed bank list and Sivb is going on it.

That's pretty normal for confidence based stuff like this. There isn't really a point in regulators/insurers releasing a "well we're about half confident" message. So it flips from full confidence to zero confidence. Bit jarring but the sharp transition is not unexpected.

This is how quickly a bank run can happen. They announced they were seeking funding, people started withdrawing all their money, and the investors all pulled out, leaving SVB high and dry. Now it's dead.

It is fun (in a morbid kind of way) just seeing how quickly the confidence on these things turn.

"Company is 200 years old and we will go for another 200 years more!"

2 Days later

"Whoops, all the moneys gone. Bye!"