A lot of regional banks were capitalized by deposits, once SVB collapsed the fed opened additional opportunities for regional banks to be capitalized by the fed

A lot of regional banks were capitalized by deposits, once SVB collapsed the fed opened additional opportunities for regional banks to be capitalized by the fed. In general, the fed acts as a lender of last resort and charges excess interest rates. First republic had a moment where bigger banks deposited ~$30B into it, but even that was a small percentage of their overall depositor base. As deposits continued to flee they had to rely more on the fed (and then failed).