No, they banked there because SVB would throw money at VC's and founders (ski trips, free meals, lines of credit) who in turn would recommend/force their companies to use the bank. For all the talk of being "friendly" and "relationships" thats basically it.
The average american now has to cover the loss, either through eventual taxes, or through passthrough costs from their bank (who will not give them a free meal or ski trip).
The average american now has to cover the loss, either through eventual taxes, or through passthrough costs from their bank (who will not give them a free meal or ski trip).