A lot of the people who could suffer because of this are not the people who caused the problems. The biggest risk is that this leads to runs on other banks. Pe

A lot of the people who could suffer because of this are not the people who caused the problems. The biggest risk is that this leads to runs on other banks. People are already looking pretty closely at a few others like First Republic. Deposit insurance exists to reassure people that they won't lose their money, to reduce the temptation to start a bank run. The workers who might not get their next paychecks or could lose their jobs entirely are not to blame for the problem either. VCs will be fine no matter what happens, because they are billionaires. Trying to hurt them will fail and will result in other people getting hurt too. Moral outrage shouldn't be used as an excuse to make a bad problem worse.