> not because they made an arbitrary choice.

It is not an arbitrary choice, svb was known for their risk taking behavior which is why so many risky small businesses landed on their lap

Rather than taking standard loans designed to reduce systemic risk, startups chose to use this bank because it allowed them to access capital more rapidly or in exchange for their own pennystocks, which ofc leads to increasing systemic risk and leads to the situation today

Sow winds and reap whirlwind