If two regional banks failing with little realized loss is massive and unprecedented how would you describe 2007-2008 when the entire world economy was brought to its knees with napkin math ~1.2T of bailouts/failures in the US let alone Europe with several banks nationalized (e.g. UBS and RBS) and nation states defaulting on debt?
This graph only shows consumer banking failures which captures a tiny fraction of the financial institution failures in 2008.
Additionally, this dataset by definition doesn’t consider the several financial institutions (including much larger consumer banks) that were deemed “too big to fail” and were therefore not allowed to fail and didn’t make this list.
Finally, this graph reports deposits which are not “lost” in a bank run, the bonds still have their original value if they can be held to maturity. The actual cost to the government/FDIC will be no where near what the total deposits number is.
But for context here are some much larger numbers following the same criteria:
Fannie Mae and Freddie Mac had $5T in mortgage backed securities and debt when they went under.
AIG was backstopping some ~$600B in financial instruments for banks and needed a $180B bailout.
