That doesn’t seem a problem, if the depositors go bankrupt, the banks shouldn’t be affected unless the bank lent them money. But the VCs gave the money, not the

That doesn’t seem a problem, if the depositors go bankrupt, the banks shouldn’t be affected unless the bank lent them money. But the VCs gave the money, not the bank. I think the problem is really that the bank grew too quickly, so it only recently bought a bunch of low interest long term debt that was now worth much less. Could happen to other banks, too.