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Silicon Valley Bank’s failure from a lightning-quick bank run on March 10, the second largest in US history, has spooked financial markets. The Federal Reserve, with the help of the Treasury and FDIC, attempted to ease the panic on March 12 by announcing that all uninsured depositors would be made whole and unveiled a loan program to backstop other banks. But – on March 13 the stocks of mid-size regional banks plummeted, evoking memories of past financial crises. Interest rates declined sharply, under the assumption that the Fed’s year-long cycle of aggressive rate hikes has peaked. Financial contagion surpasses
