Remember Silicon Valley Bank? The bank held large amounts of safe US Treasury securities. But when interest rates went up, the market value of those bonds fell. It faced a run by depositors three years ago and was in effect bailed out by an ad hoc decision to extend to all depositors the deposit insurance normally limited to the first $250,000 of retail deposits. As this column pointed out then, this did not follow the prescribed procedure of restructuring the bank while allocating losses among shareholders and unsecured creditors. “You are doomed to repeat the errors of the last crisis if you don’t use the tools put in place since then,” I wrote then.