RE: That’s what the FDIC is for.
So, the government still has a role to play then after all !
I won’t quibble with you on the depth of free-market lassiez-faire capitalism we should have in society, but note that the I in FDIC stands for Insurance — banks (i.e. depositors) pay / paid into this fund and traded some small percentage of the interest on their deposits for the peace of mind; theoretically it follows that it should be self-sustaining in the same way the casualty insurance industry is, and therefore not necessarily exclusively a government enterprise.