You will lose far far more if the public loses faith in banks. Not wanting depositors to get backstopped is cutting off your nose to spite your face.
Nobody in "the public" is losing faith in banks. FDIC covers everybody up to $250k. If you have more money than that and can't be arsed to split it up into multiple accounts that's on you.
> You will lose far far more if the public loses faith in banks
Maybe so. But I think we should be honest about what this is: a bailout of the banking industry.