Banks are prone to bailouts, hedge funds are not (in the traditional sense of taxpayer money, not private investment). Many banks control trillions of dollars.

Banks are prone to bailouts, hedge funds are not (in the traditional sense of taxpayer money, not private investment). Many banks control trillions of dollars. Hedge funds almost always have less than $50B, usually by one or two orders of magnitude. If a bank fails, it's actually a problem for the government. If a hedge fund fails, it's barely a blip. If the limited partner was smart, it will also only cause them a single digit percentage decrease in their portfolio. Hedge funds can amplify a systemic risk, but they would not really be targets for a bailout, the banks would be.