Any kind of bailout for this crash has a big optics problem, because the typically sympathetic depositors to a failed bank are in this case big risk taking star

Any kind of bailout for this crash has a big optics problem, because the typically sympathetic depositors to a failed bank are in this case big risk taking startups. Two wildly different groups are in trouble with any bank failure: First, the bank equity holders and senior management. Second, the depositors. In general, I'm sure everyone believes that first group - the risk takers - should be wiped out. Moral hazard etc. etc. etc. But that second group is usually really sympathetic! These are just bank deposits. You don't WANT people to have to scrutinize their bank's credit risk, that's why we have the FDIC! But here the depositors are themselves massive risk takers - tech startups. And so politically, seeing the depositors get a handout is going to be a tough pill to swallow. Even though the risk that blew them up (bank credit) wasn't the risk typically associated with their business model.