I never suggested that the depositors should lose their money. They should have known about the 250k limit and not exceeded it in the first place, but I didn't

I never suggested that the depositors should lose their money. They should have known about the 250k limit and not exceeded it in the first place, but I didn't say they should lose their money. I said the cap is irrelevant. Everyone with SVB got all their money back. Even if you had $20 million in the account at SVB, you got it back. When, technically, you are only supposed to get back $250k. So the rule is applied arbitrarily, depending on what is or is not a "systemic risk". If a rural bank fails and people have more than 250k in their accounts, they will lose it. If SVB or First Republic fails, they won't. This case is a little different in that JP Morgan bought the whole thing. Which is just leading to further consolidation in the really TBTF banks.