FDIC isn’t designed to prevent runs entirely. It designed to prevent runs from having a serious financial impact on retail banking customers, and as such is cap

FDIC isn’t designed to prevent runs entirely. It designed to prevent runs from having a serious financial impact on retail banking customers, and as such is capped at 250k per depositor per bank. SVB probably has a disproportionate number of its customers being mid to large businesses, for which FDIC protection isn’t as helpful. So they’re probably more vulnerable to runs than a bank that mostly holds retail customer funds. I don’t think the FDIC intends to stop every possible bank run, but rather dramatically reduce the number of them and reduce the impact when they happen. I think on that front the FDIC has been enormously successful