Define costs, specifically. What are the 'costs' of ensuring that depositors have their money, while taking over long-term SVB investments that the government can wait out? What are the 'costs' of tens of thousands of job losses? What are the specific 'costs' of significant centralization of banking, as any new VC would immediately require a start-up to move it's money to JPM or GS?
The cost is that we keep publicizing risk and privatizing gains. SVB took advantage of Trump-era deregulation to make more profit and now that they've screwed up they want help. The people who deposited money at SVB profited from those choices and now they also want a bailout.
Making depositors whole is important and should happen. Confidence in the banking system is important. A company that needs banking should not be subject to the same risk as a shareholder.
If depositors gained single penny of interest on their deposits. They should have been certain there is some risk. Including losing money above 250k. And they have less than zero right to cry when risk realises.
If it costs more than a dime, though, let's not.