I don't think it is even chicken or egg. I think you have it wrong here

I contend there is no private entity credit that would go near SVB because precisely they realized more losses than they had more depositors, and such credit would have never been secured at the top of the pile with the FDIC lurking nearby.

No credit facility would save a doomed bank after the realized losses. It was a matter of time.

The panic was not the cause. The panic was always going to happen. A public company would have never been able to do a firesale/equity raise without inducing a panic in the first place.

That untrue. If they held the bonds to maturity they would be worth more than their face value. However due to time value of money other bonds with higher yields are in more demand making the current price lower. A private entity wouldn’t take the risk but a public one would. In fact the fed (quasi public) has been buying precisely these assets for over a decade. They actually made substantial returns by simply holding these MBS to maturity.

> the fed (quasi public) has been buying precisely these assets for over a decade

At market price, not face value.

That’s correct, but they can also lend at net present value of the HTM value using it as collateral.

Credit doesn't help

If you need $80B before your 10Y bonds mature and borrow it today, you're paying minimum 4% interest. By the time your $80B in bonds mature you owe $118B

If you're saying it doesn't matter to FDIC because they can get "free" credit, that's equivalent to a bail out

I don’t think there’s any doubt the depositors and clients of the bank are being bailed out.