Which is likely to be passed on to consumers via increased costs; in an already unfavorable economic climate for lower end of the income gradient.
I also don't agree that the most prudent and responsible banks bailing out disproportionately depositors at failed banks is beneficial for them or their depositors. It also creates a moral hazard for customers to chase banks with the highest yield risk profile knowing they'll be bailed out by the other actors.
people seeing a bank fail will worry that their own bank could fail, which could lead them to withdraw en masse which will cause their own banks to fail, and so forth. this scenario is tremendously bad for everyone.
>people seeing a bank fail will worry that their own bank could fai
I feel more confident in my bank as it is compared to my bank minus a "special assessment" to backstop depositors at irresponsible banks.