That's the thing: the depositors are now unsecured creditors of SVB. The problem is that they don't want to be unsecured creditors. They want to be secured cred

That's the thing: the depositors are now unsecured creditors of SVB. The problem is that they don't want to be unsecured creditors. They want to be secured creditors. They will get some of the proceeds of their loan, if there are any proceeds left over once secured creditors are paid. But that's where their complaints come in. There's almost assuredly not enough to recoup 100% of their deposits. Not only that, it could take a while before they receive anything. Time is money as they say, especially with today's interest rates. If I have a bank and there are 10 secured customers who have deposited $100 each and 10 non-secured customers who have deposited $100 each and I can only cover $1,200 worth of deposits, the non-secured customers are going to be understandably upset. The 10 secured customers get made whole and then I have $200 left over. I can give each non-secured customer 20% of their $100 deposit. These unsecured creditors will receive money in proportion to their deposits from what is left over. The questions are: is there anything left over and how much will it cover. Yes, the deposits do become an unsecured claim on things like the proceeds of loans that are sold off (not the proceeds of their specific loan, but the proceeds of things sold off generally). The issue isn't that people are trying to deny that. The issue is that there's probably very little left over to recoup.