> The bank was capitalized fine (albeit with underperforming treasury assets given interest rate increases) until it got $40 billion in withdrawals in a day. Y

> The bank was capitalized fine (albeit with underperforming treasury assets given interest rate increases) until it got $40 billion in withdrawals in a day. You, like many others, are counfounding the trigger (Panic Withdrawls) with the cause (Lack of Diversification and bad risk-management in general). And the withdrawls come after their sale of assets at a loss of 2Billion+ "following a larger-than-expected decline in deposits" (This was their declaration for the fire sale, so no it was not capitalised so fine). Ofcourse this type of operation would cause panic and 40Billion in withdrawls after this type of declaration was to be expected and accounted for.