I think Yogi is right here, though, that the KRE ETF did actually fall on Thursday and Friday. My question here is similar to the Washington Mutual debacle, when active fund managers kept holding that one straight into its meltdown. How do they not see the significant risks involved, with in this case, rising rates and depositor withdrawals?

The Federal Reserve and the Treasury Department are preparing emergency measures to shore up banks and ensure they can meet potential demands by their customers to withdraw money, as the US seeks to stave off a deeper crisis after SVB Financial Group’s failure.
The Fed is planning to ease the terms of banks’ access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB’s Silicon Valley Bank. The Fed and Treasury are also preparing a program to backstop deposits using the Fed’s emergency lending authority.
The changes under discussion were described by people with knowledge of the matter, who asked not to be named because the talks are confidential. Representatives for the Fed and Treasury had no comment.
Regulators are discussing extraordinary measures as banks face the prospect of booking losses if customers pull uninsured deposits after the swift collapse of SVB rattled financial markets last week and left its clients in the lurch. A flood of withdrawals can force banks to sell assets such as bonds that have deteriorated in value amid interest-rate increases — the dynamic behind SVB’s demise.

In [Diamond Hill Mid Cap's] shareholder commentary from the end of 2022, manager Chris Welch acknowledged the stock was facing difficulties. “Regional banks First Republic and SVB Financial were pressured amid a rising rate environment, which is weighing on net interest margins.”
Welch singled out the unique position of Silicon Valley Bank. “SVB Financial faced additional headwinds given its exposure to the innovation economy, its primary area of focus—though we believe such an environment offers the company an opportunity to add tremendous value for its clients and cement its leadership position in a lucrative space,” he wrote.

The UK government is scrambling to secure an emergency deal to protect Britain’s tech and life sciences sectors from major losses after the collapse of Silicon Valley Bank (SVB), as financial markets braced for further volatility after the biggest bank failure since 2008.
The prime minister, Rishi Sunak, and the chancellor, Jeremy Hunt, signalled on Sunday that they were exploring a range of options, including an emergency fund that could provide a cash lifeline to support startups, as bidders put their hat in the ring for a potential takeover of the UK subsidiary.
Hunt warned that fledgling businesses across the tech and life sciences sector were at “serious risk” if deposits were wiped out by the collapse of SVB UK.
The US treasury secretary, Janet Yellen, said on Sunday there would be no bailout for Silicon Valley Bank, but that the Biden administration was working closely with regulators to help depositors caught up in its collapse.
UK authorities were understood to be considering a private bailout. Representatives of SVB’s UK subsidiary have reached out to lenders including NatWest, Barclays and Lloyds Banking Group to gauge interest in a potential takeover of the British operations.
British clearing bank the Bank of London confirmed on Sunday night it had submitted a rescue bid for the UK arm, alongside a group of private equity firms. “Silicon Valley Bank cannot be allowed to fail given the vital community it serves,” said Bank of London’s chief executive, Anthony Watson.

To Our Valued Clients,
In light of recent industry events, the last few days have caused uncertainty in the financial markets. We want to take a moment to reinforce the safety and stability of First Republic, reflected in the continued strength of our capital, liquidity and operations.
Our capital remains strong. Our capital levels are significantly higher than the regulatory requirements for being considered well capitalized.
Our liquidity remains strong. In addition to our well-diversified deposit base, we continue to have access to over $60 billion of available, unused borrowing capacity at the Federal Home Loan Bank and the Federal Reserve Bank.
We are here to fully serve you. We stand ready to process transactions and wires, fund loans, answer questions and serve your overall financial needs — as we do every day.
For almost 40 years, we have operated a simple, straightforward business model centered on taking extraordinary care of our clients. We have successfully navigated various macroeconomic and interest rate environments, and today we have among the industry’s highest rates of client satisfaction and retention.

In addition, regulators are considering more extraordinary measures such as deeming the failure of SVB to be a systemic risk to the financial system, people familiar with the matter said. That could give regulators more flexibility to backstop uninsured deposits.
A U.S. plan that soothes nerves about access to uninsured deposits—most of the bank’s deposits are sizable enough that they don’t carry Federal Deposit Insurance Corp. protection—could tamp down the crisis and limit any impact on the economy as the Federal Reserve focuses on combating inflation by raising interest rates.
But failing to swiftly clarify how SVB’s customers can access funds, make payroll and conduct business risks broader economic consequences and threatens to complicate the Fed’s monetary policy decisions.
“I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation,” Treasury Secretary Janet Yellen said in an interview on Face the Nation on CBS Sunday.

Treasury Secretary Janet Yellen says the U.S. government won't bail out Silicon Valley Bank as it did with other financial institutions during the 2008 financial crisis, but she noted that regulators are working to ensure people and businesses with money in the failed bank would be made whole.
Personal comment: An interesting distinction, and one that I originally argued for in another thread.
"The reforms that have been put in place means that we're not going to do that again," Yellen said when asked about a bailout during a Sunday appearance on CBS's Face the Nation.
"But we are concerned about depositors and are focused on trying to meet their needs," she added.
The fate of Silicon Valley Bank, or SVB, and its customers had been up in the air over the weekend, days after federal regulators took control of the institution following a "run" on the bank by depositors.
Customers had been flooding the bank with requests to withdraw their money, and earlier last week SVB said it had to sell bonds at a steep loss in order to meet those requests. That announcement worsened the panic over SVB's financial situation and led to even more withdrawal attempts until regulators stepped in.
The collapse of SVB marks one of the largest failures of an American bank since the 2008 global financial crisis.
SVB had carved out a niche in the banking sector by lending to tech startups, but the recent financial problems facing the tech industry put a strain on the bank, and caused its stock price to tank.
Yellen said that, despite the collapse of SVB, she believes the overall American banking system "is really safe and well-capitalized" and "resilient."
The Federal Deposit Insurance Corporation said on Friday that all insured depositors would have full access to their insured funds no later than Monday morning. The agency also said it would pay uninsured depositors an "advance dividend" in the next week, and that depositors would be sent a "receivership certificate for the remaining amount of their uninsured funds."
An independent federal agency, the FDIC doesn't use taxpayer money to insure deposits, but rather is funded through premiums paid by member banks and savings associations.
Regulators in the United Kingdom were also working on a plan to ensure that customers of SVB's UK branch were paid.
The bank's collapse has left tech companies and other SVB customers in limbo, and it's even caused headaches for others not directly connected to the bank, such as Etsy sellers who were told they may see delays in receiving payments because the online marketplace uses SVB to make some payments.

People saw that if HTM was market to market, SVB was operating with negative equity since September. All that needed was some trigger for the run, and some say that rumors of it going under spread like wildfire on Twitter this week. And it happened.
Worrisome thing is that this can happen to almost 2 dozen banks right now.

For a small fee, IntraFi (old ICS/CEDARS) would auto-split your $stash into multiple FDIC insured banks, or you can do this yourself.
https://www.intrafi.com/solutions/depositors/

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Schwab Bank and Schwab Premier Bank are both Texas-chartered savings banks that are regulated by the Texas Department of Savings and Mortgage Lending and the Federal Reserve Board. Schwab Trust Bank is a Nevada-chartered savings bank that is regulated by the Nevada Financial Institutions Division and the FDIC. Schwab, Schwab Bank, Schwab Premier Bank, and Schwab Trust Bank are separate but affiliated companies and wholly owned subsidiaries of The Charles Schwab Corporation (and are referred to as the "Affiliated Program Banks"). The Charles Schwab Corporation is a savings and loan holding company, regulated by the Federal Reserve Board. TD Bank and TD Bank USA are national banks regulated by the Federal Office of the Comptroller of the Currency.