I guess we're going to have to go through the experience of re-learning why so many of our government agencies and regulations existed in the first place. It's shameful how short our societal memory is.
Meanwhile, the big players know they'll be bailed out regardless, so it's no skin off their backs.
FDIC was created to revive trust in banking during and after the Great Depression when banks collapsed. People distrusted banks, FDIC helped not only regular peoples savings, yet also to help competition in banking. Can we expect the smaller banks collapse and take down the savings of people? What's next the SEC?
Meanwhile, the big players know they'll be bailed out regardless, so it's no skin off their backs.