SVB's main issue is that their depositors are leaving, and they have to pay their depositors _RIGHT NOW_, as this ongoing bank run occurs. They cannot afford t

SVB's main issue is that their depositors are leaving, and they have to pay their depositors _RIGHT NOW_, as this ongoing bank run occurs. They cannot afford to wait. Depositors have higher priority than shareholders, so any shareholder equity is obviously wiped out and $0. Such is the curse of seniority: the depositors have a stronger legal priority on those bonds than the shareholders, so the depositors get paid first... and the share holders are paid whatever is remaining (probably $0)