What kind of government allows their citizens to bear the brunt of the risk for pitiful gains?
"If it wasn't for that pesky government, we'd more than happily take more risks with -your- money!"
So sure, banks want to take more risks with your money. But if you start to understand the web of banking regulations, you'll see that there are multiple different groups with oversight, each with different goals and different regulatory frameworks. It's extremely difficult to maintain compliance and the complexity is a problem for a number of reasons, including the fact that a lot of the regulations are legacies of a time before interstate banking.