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We've seen this before. Fed's experience in 07-09 told it shadow banks, structured products and too-big-to-fail banks were the weak links. Turns out it's boring old bonds, deposits and smaller regulated banks. My column explains. wsj.com/articles/svb-f…
2/ What could be safer, post-GFC, then a regional bank taking in deposits and investing them in government bonds? Well, a safe strategy taken to extremes becomes unsafe. (#Foolproof). Buying zero risk weighted Treasury & agency securities seemed safe so banks loaded up ... 
3/ Of course, these bonds don't have credit risk but they do have interest rate risk and interest rates went up a lot - more than bankers or their regulators anticipated, creating very large mark to market losses.
