Chris Whalen, an investment banker who used to work for the Fed, has put the blame squarely on the shoulders of Powell's rate rises which have put alot of strain on banks who bought US government paper when bond prices were high and yields were low. Now when rates are much higher the price of the bonds they bought when rates were at zero has gone down alot meaning those banks have large unrealized losses.
No one in the Fed/US treasury seemed to realize that rate rises are not good for the banks.
Do you not think the Fed may pause its rate rises to take pressure off the banking system?
The other issue of course is how the Fed/Treasury have given yet another bailout to the 1% who will be reimbursed in full instead of taking any losses on this bank going under.