I don't think it's unreasonable for everyone to take a haircut.
But Patrick is still paying out in full. Unless he still plans on doing that for everyone, that seems unfair.
I agree. And trying to cause further panic to create an even worse run on the bank is also unfair.
Yeah, that's madness. Best thing to do is payback everyone pro rata now and set dates in the future for additional payments when/if loans are returned.
Of course this is assuming he was really duped and lost his personal money with Pirate before realizing his own lending was in significant risk (which is in doubt, as Joel points out).