This is precisely why so many people were upset with the government intervention in the first place, similar to that of the '08 crisis.

Normally, a larger bank could come in and purchase up the assets of SVB because they would have the liquidity to spare. It's not as if creditors would be completely out of luck if the government did not step in. FDIC allegedly stopped private banks from coming in and purchasing SVB for whatever reason. If the remedy to a bank collapse is for the federal government to come in, then people might as well bank with the federal government and have them manage assets. And in fact, some of the socialist politicians in America advocate for such a system where investments are managed by the federal government instead of private institutions. Social security is already a system that works like this, and it's set to become insolvent in the near future.