There are financial instruments like interest rate swaps specifically for banks to hedge against this exact scenario.
Let’s not extrapolate some simplified personal finance advice to financial professionals who should have known better
And if you escape civil action by IRS, the fed or local government can simply take it as civil asset forfeiture without accusing you of wrongdoing.
.gov really really hates big piles of printed currency and if they find out you have it the temptation for them to take it can become overwhelming to various entities that survive off of the taking.
Because criminals/tax evaders do that.
The game is rigged. Give me a bank where I just deposit my funds, and nobody touches it and I'm happy to pay for the service. Maybe I want a portion of it to grow and I'll allow it to be lended, for interest.
The bank should work in my interest, not their investors.
The only thing that's broken is the financial system. A customer should be aware when depositing money that that money might be locked away, and agree to those terms, and get a cut.
This is SVB gambling and losing the bet, simple as. Everything else is just a pathetic excuse, don't enable it.
Just look at the term "excess liquidity", that's newspeak. I expect the bank to have my 100$ the day I ask for it. I'm not a using bank because I want to, but if I store it under my bed I get to deal with the IRS. They make themselves necessary to live, then expect my deposits to work for them.