It would be a mistake. It's not the hotdog seller on the streets that has to pay for the mistakes that the high-risk ventures bank did. Here, we talk about pr

It would be a mistake. It's not the hotdog seller on the streets that has to pay for the mistakes that the high-risk ventures bank did. Here, we talk about private guys doing deals together; it's a specialized corporate bank, made for high-risk ventures. So, its main customer base are companies that are funded by VCs. The fact is that many VCs already pulled out billions in profit by doing successful exits with their startups. If the VCs want to continue to have more successful exits, then their own interest is to support or save SVB. If the VCs don't save SVB, then they know that their future return on investment on non-exited ventures will get unlikely. VCs already have incentive to save the companies that were dependent on SVB (or to directly save SVB) to maximize the chances of getting a return. All of that means that VCs or other capital sources will anyway take the opportunity to offer loans at outrageous rates to these companies to "save them", and happily say "hey, we at VC [ABC], we support our companies so much that we negotiated new issue of convertible notes". At the same time, they should offer not too outrageous conditions, to not demotivate the founders. It's not the role of the government to sponsor the profit of the VCs, and to take all the losses when things go sour.