Regional banks can have a lack of diversification, and that's just the reality of doing business solely regionally - you are at the whims of the local market.

Regional banks can have a lack of diversification, and that's just the reality of doing business solely regionally - you are at the whims of the local market. Why did Silicon Valley Bank have so many customers in tech? Well, name is one thing, but they've had a great reputation for nearly 40 years. They were also quite friendly in loan terms to early or completely new startups, many other banks quite literally being unfriendly to startups to say the least, if not laughed out of the door, or required exorbitant equity pledges that would allow the arbiter ownership of all assets. This is still a free market, and in free markets businesses fail and rise all the time. Some businesses do not adjust their position against the always changing risk and fail, like thousands of businesses every year. Some businesses park a significant chunk of their income at one bank, end up getting screwed from a bank run, and may end up losing quite a bit of money. Others do not. There will still be startups. There will still be many of the same corps that exist today in 5, 10, 15, maybe forever years. Others will not. If your belief in the US banking system has been decimated, I don't know what to tell you, but if we survived the housing market failure which is much larger than tech, even today, I'm sure we will survive this one. We just may not have startups selling superpowered 10x compute chrome browsers in 2024.