The assets do not have to increase in value, the face value on them is enough (if what I am reading is right), but that is if you hold the bonds until maturity.

The assets do not have to increase in value, the face value on them is enough (if what I am reading is right), but that is if you hold the bonds until maturity. SVB's problem was that suddenly they could not wait for maturity their depositors were asking for their money right now. Since most of the money is in treasury bonds, the government can either wait until then, or maybe nullify the bonds that are now in their hands, since it is now the government owing the government money (there is probably some complexity there, but I don't know my way though it). In the mean time the depositors' money needs to come out of the FDIC, and that is probably going to increase costs for banks (and thus their consumers), until things can be worked out.