FDIC insurance was never intended to cover everything, hence the limit. It was designed to ensure that the general public[1] could have confidence that their deposits were safe. Larger players were also covered... up to the same limit. That is fair and reasonable. For those with significant assets supplemental deposit insurance products are a thing, just as home and auto insurance is, and these people/companies opted not to purchase it or otherwise prudently manage their money given the very well known limits of FDIC coverage.

Why should I be happy that the rest of us are now being volunteered to pay for insurance coverage for the group most able to understand the risk they were taking and pay for it themselves? If that weren't bad enough, this new coverage only applies for some banks. This is exactly the socialization of losses that so infuriates the general public. Not only are we paying for it, albeit indirectly, but most of us aren't even eligible for it ourselves.

This is yet another move in the exact wrong direction.

[1] i.e. the majority of individuals and small businesses who tend to be less sophisticated. As a result this quite easily understood system was put into place. I also don't buy any argument that something average Americans understand is just too complex or arcane for a group of largely 'qualified investors' and VCs.