re: All this bank hysteria reminds me of the cray toilet paper crisis during China Virus hype

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The two banks that failed were likely not typical in that they sucked in that respect.

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IIRC SVB's issue stemmed from their reliance on crypto markets over traditional investments. I'd like to know how/why/if that was a legally acceptable way for a large bank to do business.

In hindsight the whole meltdown in 2008/9 was understandable. The creation of minimal document loans, subprime markets, and derivatives built to a head before everything collapsed. You'd think the lesson would have been learned for at least a couple of generations. This was people making stupid decisions. If you were making deposits greater than the FDIC maximum, you should have done your due diligence on the bank. This is especially true for small-medium sized businesses.

This will affect everybody as the fed will now also have to factor in confidence in the banking system when looking at interest rates (essentially bribing people to keep their money in the system). In the '08/9 crisis I was about the same age as my great-grandfather was during the depression. The only money we leave in a bank is what's needed for normal monthly expenses. My kids/grandkids will have to do the same close inspection around the house for money as my grandparents/parents did when my great-grandpa died.