While the bank’s failure resulted from poor management by the bank, it was made worse by government manipulation of the economy. The BTFP provides temporary loans to insure banks can cover deposits so they don’t fail and the FDIC guarantees losses when banks fail, but they are designed to help in a limited crisis during a normal economy. President Trump built up a stable economy and when Covid hit, it created a temporary crisis. President Trump provided stimulus money to help those out of work during the shutdown and used BTFP funds to help banks weather the crisis which was helpful. However, President Biden prolonged the shutdown after the initial crisis was over, prolonging the crisis. In addition, he continued to pour out stimulus money discouraging workers from returning to work. He is still giving out stimulus money. It continues to prolong the crisis. It has also disrupted the economy that was needed to help the banks recover. Banks don’t just put the money that is deposited in a vault and wait for you to come get it. They loan it out at interest to make the money needed to operate with the confidence that it will be repaid before you come to get it. They depend on regular deposits to supply the money they need to loan out. Many people are using the stimulus money to live on and delaying returning to work rather than saving it. In addition, with a deteriorating economy and high inflation fueled by massive government spending, depositors don’t have the money to deposit and have reduced deposits to cover their needs, so the banks don’t have the money on hand they need to cover withdrawals. In addition, the federal government has been raising interest rates to combat inflation, so banks are forced to borrow money at high interest to cover loans they have made at low interest. Higher interest rates have also discouraged borrowing so there isn’t as much interest coming in to cover operating costs.