The Fed has intervened to insulate open banks against liquidity concerns related to the open banks. Preventing a contagion likely played a role in invoking these systemic risk authorities for banks that are otherwise not central to the financial system. Crisis-fighters largely lost their authorities after the 2008 financial crisis to protect individual banks from contagion without first closing them. So, responding so forcefully to these relatively insignificant banks' failures so forcefully hopefully limits contagion to any banks that may actually be more prone to spreading financial wildfire.

the other thing worth noting is that this has primarily been a run on one kind of business model: banking tech/VC/Silicon Valley - which itself is facing belt-tightening as the Fed has raised interest rates steeply. We have not seen signs of contagion large, diversified banks - which are actually experiencing deposit inflows.

-Steven