[RestlessMind]

No.

I lived through GFC and 2023 is nothing like that. Sure, some banks will go bust, especially the ones who have duration/liability mismatch. They are systematically unimportant (by definition, else they would have had stricter regulation).

Fed is also doing what common people would prefer to happen - letting equity holders go bust (aka rich people) and protecting deposits (esp 100% of the poor are helped because, again by definition, they have <250K in deposits and those are 100% guaranteed). While protecting deposits may also end up helping the rich, that should not be a big deal in practice because the rich are already savvy enough (like Thiel) to pull out their at-risk deposits and move those to SIBs. So by guaranteeing 100% deposits, Fed encourages rich to continue parking money at smaller regional banks which is again something a lot of common people want - avoiding concentration into 5 big banks.