re: Main Street is bailing out risky banks again; this time it's Menlo Park instead of Wall St

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I understand the pressure to nip this in the bud and reduce the chance of runs at other banks. But I also think that there's a lot of noise created by Silicon Valley VC's and startups now so they can scare the government and taxpayers into a bail out.

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This is likely what's happening now.

Feds think this is a potential systemic issue, so they are trying to prevent a run on other risky banks. No bank can handle 70+% of people cashing out in two days.

We should not be bailing out depositors that are uninsured. That should be coming from whatever the FDIC can liquidate from taking over SBV. If that falls short, then it isn't the rest of the country's problem.