[twblalock]

We've effectively had 100% deposit insurance at the "too big to fail" banks since 2008 and the lending restrictions you are predicting have not happened.

The fundamental problem is that we had effective 100% insurance at the "too big to fail" banks but not at the others. People just didn't think about that until quite recently, and when they figured it out, they panicked and were going to move all their money into the too big to fail banks unless the government stepped in.

[chernevik]

Why weren't the likes of JP Morgan competing with SVB for this business?

And notice that in 2018 SVB was explicitly relieved of the increased regulation accompanying the "systematically important" label.