That $250,000 number is quite a bit obsolete now in 2023, so the FDIC insurance should probably be raised given that it’s kind of excessive to expect billionaires to split their money up in 4,000+ different accounts/banks to insure all of their money…

But it’s beside the point anyway because the FDIC only has $128 billion in its insurance fund, and SVB had about $200 billion in assets, of which only about 90% was insured. Had other banks continued to succumb to bank runs and bankruptcies, the FDIC would not have enough money to actually cover the deposits without printing lots of money at the Fed and risking a massive inflation event. To prevent that from happening, bold steps by the Biden Administration were necessary and warranted to nip the problem of failing confidence in our entire banking system in the bud.