> But the message to depositors everywhere, of every size, is "don't worry about your bank's solvency, we'll protect you".
Good, because that is the message the public needs to hear right now, if you don't want a domino effect to destroy the banking industry because customers freak out.
Obviously some regulations need to change but it's not worth sacrificing the economy and hurting everyone to make that point.
Because most of the time when a bank fails it is obviously because of problems with only that bank (which is usually a small regional bank that just isn't managed very well), and it doesn't widen into a national banking crisis.
Good, because that is the message the public needs to hear right now, if you don't want a domino effect to destroy the banking industry because customers freak out.
Obviously some regulations need to change but it's not worth sacrificing the economy and hurting everyone to make that point.