You should learn that you the moment you put a deposit in the bank, the funds become the property of the depository bank. As a depositor, you are a creditor of the bank.

People are mad because the rules were changed in the middle of the game to serve the interests of a select few (mainly VCs and the startup crowd).

Those supporting this bailout seem to have some of the least knowledge on how banks work.

Putting a ceiling on FDIC insurance is effectively an outdated idea that doesn't work.

Take the example of a company that keeps payroll in a cash account. Let's say that company has 100 employees. Should the FDIC treat the account as belonging to 1 person or 100? If you say 1, I say you are irrational.

Companies with treasury departments already know this. They can put money in money market funds, CDARs, cash sweeps, or any other vehicle to protect their cash. There are multiple ways to hold cash with very low duration risk that does not involve putting it in a bank.

FDIC is not an outdated idea. It is just the reality of the current financial system because it would require an excess of $20 trillion dollars to insure every deposit in the banks.

Why, I do not understand.

I'm fine with banks being not for profit institutions run by the government. Allowing people to safely store their money is baseline civilization. If banks are private, the government is going to have to back them up because you can't have the operational accounts of nearly every business in the country getting wiped out randomly.