The Effect of Small Banks on Employment

The US economy is super heterogeneous. And unless you look at literally like every single small firm, every single small and big agent, 100 employee firms versus 3000 employee firms, you wouldn't know who is borrowing from who and who is exposed to what right. This is not true. We understand these small regional banks like SVBs of the world did take interest rate risk, right? They didn't do their diligence, which we can link back to regulatory failures. But the bottom of the fact is there are other banks in the economy, large banks like Bank of America, they are subject to regulation. They didn't take that much of this risk and small firm do borrow from those banks.