> As usual it is the VCs that is the cause of all of this and this entire bank run

>Bringing the startups they invest in begging to their knees, putting all their eggs into one bank. It almost works like a ponzi scheme.

Why blame the VCs and not the bank itself for its poor investment choices (ie. buying a bunch of long dated bonds/MBS)?

I agree with the criticism in general, but in this case the restructuring of these banks will be entirely paid for from their assets, and by a levy on other banks. No public funds will be used.

The other banks are most certainly going to pass the FDIC increased premiums along to all of us, though.

Driving up their fees will make them less competitive, so they will lose business, or have to compete more aggressively for it. Or the increased costs of banking services will reduce consumption. So yes you're right to a point, but none of this is in any way good or neutral for other banks. Their share prices have taken an absolute beating.