Firstly I am well aware of the 250k FDIC limit. SVB assets were liquidated and used to make depositors whole. That's it. No tax payer money used. ALL shareholders were wiped out completely as they should be...

Over half of all VC backed US startups (NOT just crypto but ALL startups) banked there and nearly 100k employees were at risk of losing their job today because payroll could not process. Companies that didn't even bank at SVB were affected because their payment facilitators use SVB. B2B companies are affected because a big portion of their clients disappear overnight due to payroll failures.

Imagine you raise money for a small business, park your raised money in a bank account (as you are legally obligated to do) for the sole purpose of processing payroll then overnight your funding is just gone.

The problem is when depositors cant safely park their money at a publicly traded massive bank, people lose faith in the banking system then runs occur on all non "too big to fail banks". Regional and community banks start to fail as they cant access capital to facilitate withdrawals as people move their funds (personal or business) to the big banks (JPMorgan/Citi etc)

Again there was no "bail out". No tax payer money was used.

I'm not saying SVB wasn't doing shady shit or not a part of something bigger. I am just seeing a lot of "muh taxpayer bailout" posts when that just wasnt the case...