Depositing cash at a bank is not a different matter. You are giving another organization your money. Everyone knows that the government, FDIC, only insures up t

Depositing cash at a bank is not a different matter. You are giving another organization your money. Everyone knows that the government, FDIC, only insures up to $250k. That organization is then lending it out to make enough profits to employ thousands of people to give you, the depositor, all the services you've come to expect. Only charlatans are dumping $5m into a single bank with the thought, "no worries, if anything goes wrong the government will pay me my $5m." All of the interest SVB depositors were rewarded with was coming from MBS. Heads, I get extra interest, tails, government bails my deposit out.