This is really interesting. If you are too big to fail Fed will protect uninsured depositors otherwise there is no guarantee. I bet depositors at the small banks above $250k limit will move their money to the big banks. It will probably cause more small banks failures.
This is truly incredible.
Here is an exchange with Senator James Lankford & Yellen.
He asks, "Will every community bank ... get the same treatment as SVB?"
Yellen: "Banks only get the treatment if ... the failure to protected uninsured depositors would create systemic risk."