First of all SVB should be left to fail. We should not privatize profits and socialize losses. We should have much more stringent regulation to prevent this from happening again.
Secondly people are conflating bailing out depositors with bailing out SVB. The bank took all the risk and had all the gains. The depositors did not have anything to gain here besides keeping their money safe. The depositors picked a reputable bank that has been around for 40 years. Their business should not fail because the failure in the bank and the government regulation.
Edit:
The ones who are hurting the most are not the VC's startup who told their startups to take their money out. It is those who didn't contribute to this problem. The depositors that didn't want to cause a bank run is the ones that will be hurt most.
Secondly people are conflating bailing out depositors with bailing out SVB. The bank took all the risk and had all the gains. The depositors did not have anything to gain here besides keeping their money safe. The depositors picked a reputable bank that has been around for 40 years. Their business should not fail because the failure in the bank and the government regulation.
Edit: The ones who are hurting the most are not the VC's startup who told their startups to take their money out. It is those who didn't contribute to this problem. The depositors that didn't want to cause a bank run is the ones that will be hurt most.