No one who knows what they're talking about is objecting to the bank's remaining assets being distributed between depositors. But there's talk of taxpayer money being used to make depositors 100% whole regardless of how many assets remain, and I think that's where the controversy is.
Everyone has always known that $250k is the max that's guaranteed to be given back to you, and the idea of the government paying back more out of taxpayer funds because a lot of VCs gave their startups bad advice rubs people wrong.
Y Combinator, in their petition, says that they want at least small business depositors to be made completely whole, without any caveats about how many assets are left. The only way this works is with taxpayer funds.
> Small business depositors at Silicon Valley Bank should be made whole. Regulators need to conduct a backstop of depositors.
