> Unfortunately, the government can’t bail out every small bank

Well, they could adopt a new program providing cash loans against a variety of term investments to deal with liquidity crunches of the type SVB faced for all banks. That would be equivalent to a bailout (at negative expected cost) of all small and large banks with similar issues to SVB.

Oh, yeah, they did that today.

https://www.federalreserve.gov/newsevents/pressreleases/mone...