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Why is the Fed encouraging capital and savings flight from money markets accounts held at regional commercial banks to the overnight reverse repo market when all that does is make the banking crisis worse?

Rumor has it that the pace of bank runs will soon result in FDIC only covering 10% of insured depositor losses at insolvent banks that fail.

Regional banks comprise close to 70% of all small business and commercial real estate loans.  

It seems like the plan is to destroy regional commercial banks because the Fed could stop this crisis in a day by forbidding movement of money from money market accounts into the overnight reverse repo market.

Events are moving at an accelerated pace.

Treasury has been borrowing from civil service retirement funds to maintain Federal Government spending, including ‘aid’ for Ukraine, while yield on the one month treasury is almost 6% and credit default swaps have gone through the roof; foretelling a technical Federal Government debt default. If this happens, look for dozens of regional banks to fail in a snap.

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