“Anything over that is bailout by government using tax dollars.”
Maybe not. I can see the Fed providing the cash to cover the deposits over the $250k fdic limit, maybe in exchange for SVB’s underwater Treasuries. There’s no real benefit to simply letting those depositor dollars vanish and go to money heaven. SVB stock and bond holders still get punished, the bank goes out of existence.
I prefer they liquidates all bonds and other assets anddistribute proceeds proportionally to depositers.