If you want to reap the benefits of capitalism, you should also get punishment for not doing the job well. Getting a haircut above the insured amount was the sensible thing here.
If we are so fearful of this, and banks are so core to the economy, why not just have government owned banks then, since it seems like government has to subsidize mismanagement.
Aaron Klein (former Treasury official, now with Brookings) agrees with you:
>There are just under 5,000 banks in America ... the right answer for the number of banks to fail in a year is greater than zero. If you have no bank failing, then you probably have bigger problems in the economy. Look, the first time in American history you went a year without a bank failure was 2005. 2006 was the second year and the regulators told us at the time, that they'd won, that this was great regulation, see, no one was failing, the system couldn't be safer. Kablooey.
If you want to reap the benefits of capitalism, you should also get punishment for not doing the job well. Getting a haircut above the insured amount was the sensible thing here.