[neilwilson]

"SVB experienced a sudden liquidity problem, not a solvency problem. "

They had a solvency problem.

The MBS they held with a six year duration didn't generate sufficient income. That meant they couldn't meet the cash letter from the Fed. That's why the FDIC was called in.

The whole strategy was based upon holding uninsured non-interest bearing liabilities for the duration - ie the cash of startups in burn mode.

It wouldn't have mattered if they had insured the HTM portfolio in the traditional manner.

Any sought equity investment in the bank would have had to be sufficient to get the net income up to the level where they could meet the terms of the cash letter from the Fed. I doubt anybody would have gone for that when the alternative was to attend the FDIC auctions and pick up the assets on sale.