Most of the big guys work like this. At a certain wallet size you get a free personal advisor who will help manage your wealth.
They take 1% of the money they manage. And then they invest it in their own funds, taking more fees there. They are not free.
You can’t seriously tell me that the CFO who is responsible for corporate finance at these SVB customers didn’t realize a business checking or savings account is not fully guaranteed? It’s in every single bank brochure and statement. If that’s that case, they need to suffer the consequences of poor contingency planning.
Additionally many startups had covenants in their financing agreements with investors that required keeping funds in SVB so they didn't have a choice.
Moreover, both startups and VCs are literally the groups that celebrate risk taking and disruption. This is it, this is the flip side of risk, the definition of risk is that you might loose. But somehow, when they loose, due to risk taking, then suddenly they want extra bail outs and help.